{"id":53152,"date":"2026-06-25T02:15:34","date_gmt":"2026-06-25T02:15:34","guid":{"rendered":"https:\/\/www.vtmarkets.com\/en-asia\/uncategorized\/eur-usd-slips-below-1-1400-as-iran-peace-uncertainty-and-hawkish-fed-lift-dollar\/"},"modified":"2026-06-25T02:15:34","modified_gmt":"2026-06-25T02:15:34","slug":"eur-usd-slips-below-1-1400-as-iran-peace-uncertainty-and-hawkish-fed-lift-dollar","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/live-updates\/eur-usd-slips-below-1-1400-as-iran-peace-uncertainty-and-hawkish-fed-lift-dollar\/","title":{"rendered":"EUR\/USD slips below 1.1400 as Iran peace uncertainty and hawkish Fed lift dollar"},"content":{"rendered":"EUR\/USD slipped below 1.1400 and traded near 1.1380 in early Asian hours on Wednesday, extending losses as markets weighed developments around a potential US-Iran peace deal. US President Donald Trump said Iran had \u201cfully and completely\u201d agreed to allow nuclear inspections, while Iran\u2019s Foreign Minister Abbas Araghchi said negotiations on the nuclear issue have not yet started. Iran\u2019s chief negotiator added that the Strait of Hormuz will \u201cnever return to its pre-war conditions\u201d and that Iran will keep control of the waterway.\n\nSeparately, a new round of talks between Israel and Lebanon opened in Washington, DC, on Tuesday, aimed at ending fighting in Lebanon between Iran-backed Hezbollah and Israel. With geopolitical risks unresolved, demand has tilted towards the US Dollar. The move was reinforced after a hawkish Federal Reserve meeting chaired by Kevin Warsh last week lifted expectations for a year-end rate rise; CME FedWatch shows markets pricing a 37.4% chance of at least a 25 bps hike at the July meeting, up from 8.5% a week earlier.\n\n<h3>Euro Weakness Amid Dollar Strength<\/h3>\n\nThe Euro is showing weakness, trading below 1.0750 against a stronger US Dollar. This trend is mainly driven by changing views on when the Federal Reserve will finally begin to lower interest rates. We see this dollar strength as a key factor for the coming weeks.\n\nRecent US inflation data came in slightly above expectations at 3.1%, making the Federal Reserve&#8217;s job more complicated. Consequently, market odds for a rate cut by the September meeting have dropped from over 60% to around 35% in just the last week. This sudden shift is supporting the dollar&#8217;s value.\n\n<h3>Geopolitical And Market Uncertainties Drive Safe-Haven Flows<\/h3>\n\nAdding to the market uncertainty are renewed trade tensions between major economic blocs. In these situations, capital often flows into the relative safety of the US Dollar. This could put additional downward pressure on risk-sensitive currencies like the Euro.\n\nWe believe traders should consider strategies that benefit from a falling EUR\/USD. This could involve buying put options on the Euro or using bear put spreads to limit costs. With market uncertainty rising, positioning for increased volatility in the near term seems prudent.\n\nWe&#8217;ve seen this pattern before, particularly during the 2022-2023 hiking cycle where inflation proved difficult to control. Central banks often have to remain hawkish for longer than the market initially predicts. This historical precedent suggests the dollar&#8217;s current strength could have more room to run.\n\n\n\n<p><b>Start trading now \u2014 click <a href=\"https:\/\/www.vtmarkets.com\/en-asia\/trade-now\/>here<\/a> to create your real VT Markets account.<\/b>\n\n<\/p>","protected":false},"excerpt":{"rendered":"<p>EUR\/USD dips near 1.1380 as geopolitical tensions and hawkish Fed expectations bolster safe-haven dollar demand.<\/p>\n","protected":false},"author":87,"featured_media":53151,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-53152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/53152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/87"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=53152"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/53152\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/53151"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=53152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=53152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=53152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}