{"id":30404,"date":"2026-03-11T08:01:20","date_gmt":"2026-03-11T08:01:20","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/30404\/"},"modified":"2026-03-11T08:01:20","modified_gmt":"2026-03-11T08:01:20","slug":"during-early-asian-trade-eur-usd-holds-near-1-1620-as-easing-safe-haven-demand-lifts-euro","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/30404\/","title":{"rendered":"During early Asian trade, EUR\/USD holds near 1.1620, as easing safe-haven demand lifts euro"},"content":{"rendered":"EUR\/USD traded higher near 1.1620 in early Asian hours on Wednesday. The Euro rebounded from a four-month low of 1.1507 as demand for the US Dollar as a safe haven eased.\n\nUS President Donald Trump said the conflict was \u201cvery complete, pretty much\u201d and the military operation was \u201cvery far\u201d ahead of its initial four- to five-week timeframe, according to Bloomberg. This reduced worries about a longer war in the Middle East and supported market mood.\n\n

Market Sentiment And Geopolitical Risk<\/h3>\nUncertainty persisted because no clear timeline was given for stopping attacks that have unsettled the Middle East and global markets. Israel\u2019s military reported a new wave of strikes on Iran and more missiles launched at Lebanon, with targets linked to Hezbollah infrastructure in southern Beirut.\n\nRenewed signs of tension could lift demand for the US Dollar and limit EUR\/USD gains. Later on Wednesday, markets await Germany\u2019s final Harmonised Index of Consumer Prices (HICP) reading and the US Consumer Price Index (CPI) data.\n\nECB President Christine Lagarde said uncertainty and volatility were unexpectedly high, making conditions hard to manage. She said the central bank would take the necessary measures to control inflation.\n\nThe Euro is used by 20 EU countries and in 2022 accounted for 31% of global foreign exchange transactions, with average daily turnover above $2.2 trillion. EUR\/USD makes up about 30% of all FX trades, followed by EUR\/JPY (4%), EUR\/GBP (3%) and EUR\/AUD (2%).\n\n

Macro Divergence And Trading Implications<\/h3>\nLast year, we saw the EUR\/USD pair trade above 1.1600 as the market reacted to easing geopolitical tensions. Today, the situation has shifted, with the pair now struggling to hold the 1.0850 level. The primary driver is no longer day-to-day conflict headlines but the widening gap in economic performance.\n\nThe US economy has shown resilience, with fourth-quarter 2025 GDP coming in at a solid 2.1% and the latest February jobs report showing moderate but steady growth. While US inflation has cooled to 2.9%, it gives the Federal Reserve little reason to consider cutting rates soon. This underlying economic strength continues to provide a supportive bid for the US Dollar.\n\nIn contrast, the Eurozone is facing a more difficult picture, which explains the Euro’s weakness. The latest Harmonized Index of Consumer Prices (HICP) remains sticky at 2.5%, putting pressure on the European Central Bank to maintain a restrictive policy stance. However, this is happening while the bloc\u2019s economic engine, Germany, shows persistent industrial weakness and manufacturing PMIs remain in contractionary territory below 50.\n\nThis divergence between a hawkish ECB and a weak economy creates significant uncertainty for the Euro. We believe this environment is ideal for selling options to collect premium, as the pair may become range-bound between competing forces. For instance, selling strangles on EUR\/USD could capitalize on the expected sideways price action.\n\nGiven the conflicting signals, traders should prepare for volatility around key data releases. The upcoming US CPI and Eurozone inflation figures will be critical in determining the next directional move. Buying short-term options, like straddles, ahead of these announcements could be a prudent way to trade a potential price breakout in either direction.\n\nWhile the specific Middle East conflict from 2025 has de-escalated, the region remains a source of background risk. We see this less as a primary driver and more as a tail risk that could trigger a sudden flight to safety. Therefore, holding some cheap, out-of-the-money call options on the US Dollar Index (DXY) could serve as an effective portfolio hedge.\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 rose near 1.1620 as safe-haven dollar demand eased; traders await German HICP and US CPI.<\/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-30404","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\/30404","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=30404"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30404\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=30404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=30404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=30404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}