Post #15975

The EU Says They Weren't Consulted About The War. So They Shouldn't Pay the Price EUR/USD is stabilizing after a sharp drop that pushed the pair to its weakest level since last July. The euro is caught between geopolitics, soft data, and central bank risk. Germany isn’t helping either—investor confidence fell sharply in March as markets worry rising prices could derail the recovery. On the positive side, EU officials (Kallas) are signaling openness to talks with Iran, stating, “The main concern of EU countries is that they were not consulted on the start of the war in Iran or its objectives.” Following that, Kallas said, “The door is not closed on participation in the Strait of Hormuz, and we have to find diplomatic ways to keep trade open to avoid a food and energy crisis.” This openness to engage Iran supports hopes of restoring oil flows—especially after NATO didn’t step in when Trump called for ships. Next catalyst is the ECB meeting Thursday, where rates are expected to hold. - Alan