EUR/USD falls 0.5% on risk-off sentiment; GBP/USD drops to 1.2650

EUR/USD has declined 0.5% (55 pips) to 1.0795 as Middle East tensions drive broad risk-off sentiment across forex markets. The escalating Iran-Israel conflict has strengthened the dollar's safe-haven appeal, with the DXY index climbing 0.7% to 105.20. GBP/USD has fallen more sharply, dropping 0.6% (75 pips) to 1.2650, while commodity currencies are under severe pressure. The FTSE 100 has tumbled 1.8% as European equities bear the brunt of geopolitical concerns. Gold's surge to $2,385 (+1.6%) reflects intense risk aversion among investors. Technical indicators show EUR/USD breaking below its 50-day moving average at 1.0820, targeting 1.0750 support. GBP/USD faces immediate support at 1.2630, with further downside likely if tensions escalate. Traders should prepare for continued volatility as markets digest geopolitical developments and position defensively ahead of potential military actions.