{"id":31287,"date":"2026-03-23T00:59:31","date_gmt":"2026-03-23T00:59:31","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/31287\/"},"modified":"2026-03-23T00:59:31","modified_gmt":"2026-03-23T00:59:31","slug":"during-early-asian-trading-eur-usd-slips-near-1-1560-as-middle-east-tensions-spur-volatility-hurting-risk-assets","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/31287\/","title":{"rendered":"During early Asian trading, EUR\/USD slips near 1.1560 as Middle East tensions spur volatility, hurting risk assets"},"content":{"rendered":"EUR\/USD fell to about 1.1560 in early Asian trade on Monday. The euro weakened against the US dollar as Middle East tensions increased volatility and reduced demand for riskier assets.\n\nMarket participants moved to a risk-averse stance as the Middle East war escalated. US President Donald Trump said on Saturday the US would \u201cobliterate\u201d Iran\u2019s power plants, starting with the biggest one, if Iran does not open the Strait of Hormuz within 48 hours.\n\n

Risk Aversion Returns<\/h3>\nUS Treasury Secretary Scott Bessent said on Sunday that sometimes you have to escalate to de-escalate. Iran warned it would strike energy sites in the Middle East after Trump\u2019s threat over power plants and the Strait of Hormuz.\n\nEuropean Central Bank officials are due to speak later on Monday. The ECB kept interest rates unchanged at its policy meeting on Thursday and said the war in Iran has made the outlook \u201cmore uncertain\u201d.\n\nThe ECB said the conflict created \u201cupside risks for inflation and downside risks for economic growth\u201d. This led traders to increase bets on ECB rate rises later this year.\n\nWe are seeing a familiar pattern of risk aversion emerge as we approach the end of the first quarter of 2026. The geopolitical tensions described in late 2025, which saw the EUR\/USD pair drop to 1.1560, provide a valuable playbook for the coming weeks. With the pair currently trading near 1.1850 amid renewed diplomatic friction in the Middle East, we should anticipate similar safe-haven flows into the US Dollar.\n\n

Options Strategies For Volatility<\/h3>\nThe key lesson from the 2025 Strait of Hormuz incident was the sharp spike in implied volatility. Traders should therefore consider buying volatility through derivatives rather than taking a simple directional bet. Using options like straddles or strangles on the EUR\/USD allows a trader to profit from a large price swing, regardless of whether tensions escalate or suddenly resolve.\n\nUnlike in late 2025, when the European Central Bank was worried about upside risks to inflation, the current economic climate is different. February\u2019s Eurozone HICP inflation data came in at a subdued 2.1%, a significant drop from the 4.5% peak seen during last year’s crisis. This makes the ECB less likely to talk about rate hikes now, potentially capping any rally in the Euro.\n\nWe must also watch energy markets closely, as the 2025 events showed how quickly oil prices can react. Brent crude, which jumped 15% in a week during that period, is already trading above $95 a barrel on the latest satellite imagery of tanker movements. Call options on major oil ETFs could serve as an effective hedge against a similar upside shock that would weigh on European economic growth.\n\nGiven that recent German industrial production data showed a 0.5% contraction last month, the Eurozone economy is more fragile now than it was in 2025. Therefore, put options on the EUR\/USD offer a defined-risk way to position for downside. This strategy capitalizes on potential Euro weakness if the situation deteriorates, mirroring the flight to safety we saw last year.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

\r\n\r\n

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

EUR\/USD slipped near 1.1560 as Middle East tensions spurred risk aversion; ECB speakers awaited amid uncertainty.<\/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-31287","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\/31287","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=31287"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31287\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=31287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=31287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=31287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}