The EUR/USD exchange rate edged down to around 1.1460 during the early Asian session on Monday, reflecting market unease about the progress of the US-Iran peace negotiations. According to FX Street, this uncertainty has weighed on the euro against the US dollar.
FX Street also noted that expectations of higher US interest rates have further supported the US dollar, contributing to the euro's decline. Investors appear cautious as they assess geopolitical developments alongside monetary policy outlooks.
For Japanese traders, the movement in EUR/USD highlights the ongoing influence of global political tensions and US monetary policy on currency markets, factors that also impact Japan's export-driven economy and risk sentiment in FX trading.