Post #15894

EUR/USD Slides as Safe-Haven Dollar and Energy Shock Pressure the Euro EUR/USD is under pressure, sliding toward the 1.17 area as the dollar strengthens on safe-haven demand. The pair is leaning lower, and unless risk sentiment stabilizes, rallies may continue to face selling pressure. The euro is getting hit from both sides. On one side, the dollar is catching a bid as markets move into risk-off after the sharp escalation in the Middle East. On the other, Europe is especially exposed to the fallout through higher energy costs, which adds another layer of pressure to an already fragile growth backdrop. This is where things get tricky for the ECB. Higher oil and energy prices can push inflation back up, but at the same time, weaker growth, tariff uncertainty, and rising input costs all weigh on the economy. That leaves the ECB stuck between inflation risk and slowing growth.