EUR/USD Drops as Investors Look for Safe Options
The euro has fallen against the US dollar after Israel attacked Iran’s nuclear sites. This news made investors worry about more fighting in the Middle East. Because of this, people are moving their money into safer currencies like the US dollar. The euro dropped from recent highs and is now close to 1.1550 dollars.
Other safe currencies, like the Japanese yen and Swiss franc, also got stronger as investors avoided risky trades. Gold prices went up too because gold is seen as a safe place to keep money in uncertain times. US government bond yields fell because more people bought bonds for safety.
Oil prices jumped because traders are worried that trouble in the Middle East could block oil shipping routes like the Strait of Hormuz. If oil prices stay high, this could push up inflation around the world.
Stock markets also dropped. Futures for US, European, and Asian stocks went down because investors are unsure how things will turn out in the region.
Impact: The euro might stay weak while the Middle East tension continues. Investors are likely to keep buying the US dollar and other safe-haven assets until the situation becomes clearer.