The EUR/USD currency pair declined to around 1.1400 on Monday, pressured by growing risk aversion in markets due to escalating tensions between the US and Iran, alongside the closure of the strategic Strait of Hormuz. The Euro modestly weakened against the US Dollar as investors weighed geopolitical risks impacting global trade flows.
According to FX Street (UOB), the pair slipped after testing 1.1460, showing increasing downward momentum. However, they noted that major support at 1.1360 is unlikely to be breached in the near term, with the EUR/USD expected to trade within a 1.1360 to 1.1450 range over the next one to three weeks.
For Japanese investors, this environment underscores the importance of closely monitoring geopolitical developments that could influence currency volatility and impact export-driven equities and FX positions.