EUR/USD Eyes Iran Tensions as European Ministers Seek Diplomatic Solution

EUR/USD holds steady near 1.0520 as geopolitical tensions between Iran and Israel escalate, prompting diplomatic intervention from European powers. French, German, and British foreign ministers are coordinating an emergency phone call with their Iranian counterpart to de-escalate the situation following weekend missile exchanges. The euro finds support from risk-off sentiment typically benefiting the single currency against emerging market currencies. Safe-haven flows have increased demand for both USD and EUR, keeping the pair range-bound between 1.0500 support and 1.0550 resistance. Traders remain cautious ahead of this week's ECB policy meeting and US retail sales data. The diplomatic efforts by European nations could provide temporary relief to risk assets if successful, potentially weakening the dollar's safe-haven appeal. Technical indicators suggest consolidation continues unless geopolitical headlines trigger a breakout from the current trading range.