EUR/USD Hits Four-Month Low on Middle East Tensions

The EUR/USD currency pair plunged to its lowest levels in over four months on Friday, driven by escalating geopolitical tensions in the Middle East that bolstered demand for the US dollar as a safe-haven asset, with the pair trading around 1.1450 in European sessions after briefly touching 1.14321 earlier in the day.

The decline extended a broader downtrend that has seen the euro weaken by approximately 4.8 percent from its 2026 year-to-date high of 1.2083 recorded on January 27. Traders noted the pair's sharp drop below key support levels from November 2025, including 1.14912 and 1.14687, which had previously held as floors for months. This breach accelerated selling pressure, pushing the euro to levels not seen since August 2025. By the North American session, the pair had fallen to 1.14321 before buyers intervened, sparking a partial recovery that lifted it back above 1.14687 but stalled just shy of 1.14912, peaking at 1.14893. As trading progressed, the euro retreated again, hovering near 1.14475 amid ongoing seller dominance.

The downturn stems primarily from heightened risks in the Middle East, where Iran's new Supreme Leader, Mojtaba Khamenei, issued his first public...