EUR/USD Weakens Amid Middle East Tensions

The EUR/USD pair has weakened to near 1.1500 during early European trading hours on Friday, weighed down by escalating tensions in the Middle East.

The Iranian Parliament Speaker Mohammad Bagher Ghalibaf stated that the United States will pay the price for killing Iranian civilians, while the Islamic Revolutionary Guard Corps targeted US bases in Kuwait, Jordan, and Bahrain after US forces bombed a building on Iran's Qeshm Island.

Despite the tensions, stronger-than-expected Gross Domestic Product data from the Eurozone and Germany have reinforced expectations of a second interest rate hike by the European Central Bank this year, potentially as soon as September. This could help limit the shared currency's losses in the near term.