Euro Retreats as Geopolitics and Fed Hawkishness Boost US Dollar

The Euro's recent gains against the US Dollar have been trimmed back as renewed geopolitical tensions and a hawkish outlook from the Federal Reserve boost demand for the greenback.

Renewed frictions, particularly in Eastern Europe and the Middle East, have prompted a flight to safe-haven assets, with the US Dollar seeing increased buying pressure.

This dynamic has capped the Euro's upside momentum, which had been building on slightly more optimistic Eurozone economic data earlier in the week.