Euro / U.S. Dollar
Long
Updated

Core Impact Logic of the Middle East Situation on EURUSD

322
(I) Energy Transmission Chain: Oil Price Fluctuations → Eurozone Inflation and Economy
The escalation of the Middle East situation (the Iran - Israel conflict, risks in the Strait of Hormuz) directly impacts the global energy supply chain:

If the conflict expands to block the Strait of Hormuz (transports ~20% of global crude oil 🛢️), Brent crude has already soared from recent lows—spiking over 5% on June 17 amid tensions ⛽️. This pushes up imported inflation in the Eurozone.

As a net energy - importing region 🌍, prolonged high oil prices will squeeze corporate profits, suppress consumption, and drag Eurozone economic recovery (German/French manufacturing is acutely energy - cost - sensitive 🏭). This weakens the euro’s fundamental support.
(II) Geopolitical Safe - Haven Sentiment: The "Safe - Haven Balance" Between USD & EUR
Amid Middle East tensions, the US dollar’s traditional safe - haven status competes with Eurozone havens like German bonds 📈:

If the US (e.g., the Trump administration) intervenes militarily 💥, market fears of "America mired in war" rise. USD safe - haven demand may temporarily weaken ⬇️, and the euro benefits as funds shift 🔄


⚡️⚡️⚡️ EURUSD ⚡️⚡️⚡️

🚀 Buy@ 1.14500 - 1.15000
🚀 TP 1.15500 - 1.15600


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I think the Fed's interest rate decision this time may cause EURUSD to directly break through 1.1550

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