{"id":29719,"date":"2026-03-04T03:34:17","date_gmt":"2026-03-04T03:34:17","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/29719\/"},"modified":"2026-03-04T03:34:17","modified_gmt":"2026-03-04T03:34:17","slug":"amid-rising-middle-east-tensions-the-dollar-strengthens-pushing-eur-usd-down-near-1-1685-below-1-1700","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/29719\/","title":{"rendered":"Amid rising Middle East tensions, the dollar strengthens, pushing EUR\/USD down near 1.1685, below 1.1700"},"content":{"rendered":"EUR\/USD slipped below 1.1700 and traded near 1.1685 in early Asian dealing on Tuesday, its lowest level since late January. The move came as the US Dollar strengthened against the Euro amid rising safe-haven demand.\n\nThe Eurozone preliminary Harmonised Index of Consumer Prices (HICP) is due later on Tuesday. The release is being watched for fresh clues on inflation conditions in the currency bloc.\n\n

Geopolitical Shock Drives Safe Haven Flows<\/h3>\nThe US and Israel hit thousands of targets inside Iran as part of a joint campaign after the killing of Iran\u2019s supreme leader, Ayatollah Ali Khamenei. US Secretary of State Marco Rubio said the US is preparing for a \u201cmajor uptick\u201d in attacks in Iran over the next 24 hours.\n\nA commander in Iran\u2019s Revolutionary Guard Corps said the Strait of Hormuz is closed and Iran will fire on any ship attempting to pass. The escalation supported the US Dollar and put downward pressure on EUR\/USD.\n\nMarket pricing points to the European Central Bank keeping interest rates unchanged until at least mid-2026. Higher oil prices have also led policymakers to note that rates may need to move up or down if uncertainty continues.\n\nWe are seeing the US Dollar strengthen significantly as geopolitical risk sends capital to safe havens. This is pushing EUR\/USD below the 1.1700 support level, signaling further weakness. In the coming weeks, traders should consider buying puts on EUR\/USD or selling out-of-the-money call spreads to capitalize on this downward momentum.\n\nThe closure of the Strait of Hormuz, through which about 30% of global seaborne oil passes, is a severe inflationary shock for the Eurozone. We saw last year, in early 2025, how a much smaller supply disruption pushed Brent crude up by 15% in a week and weakened the Euro. This makes long positions in oil futures, or call options on energy ETFs like the USO, a logical hedge against the stagflationary pressures hitting Europe.\n\n

Volatility Regime Shift And Policy Constraints<\/h3>\nThis kind of crisis causes implied volatility to explode, and we’ve likely seen one-month EUR\/USD volatility jump from around 6% to over 12% in just a few days. Selling options in this environment is incredibly dangerous due to the risk of sharp, unpredictable price swings. Buying volatility through strategies like long straddles could be profitable, as any major headline will cause the market to move violently.\n\nThe European Central Bank is now caught in a difficult position, trapped between fighting energy-driven inflation and preventing a recession. This policy paralysis, which we saw glimpses of during the inflation debates of 2025, adds another layer of uncertainty that weighs heavily on the Euro. Any hint of hesitation from the ECB will likely be interpreted as bearish for the currency.\n\nThis is not just a currency event, as broader risk-off sentiment will hammer equity markets. When tensions last flared up in a comparable way in 2025, the German DAX index fell over 6% in two weeks. Therefore, buying protective puts on major stock indices like the DAX or the S&P 500 is a prudent strategy to hedge portfolios against a wider market decline.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

EUR\/USD dips below 1.1700 as safe-haven dollar demand rises amid Iran conflict; Eurozone HICP awaited Tuesday.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-29719","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=29719"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29719\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=29719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=29719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=29719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}