Risk-Off Sentiment Pressures EUR/USD and Commodity Currencies

Global forex markets exhibited heightened risk aversion as multiple concerns converged, pushing EUR/USD down 0.25% to 1.0810 and commodity currencies significantly lower. Market participants cited uncertainty over Federal Reserve rate cut timing, escalating Russia-Ukraine tensions, potential trade tariff implementations, and French political instability as key drivers. AUD/USD dropped 0.4% to 0.6420, while NZD/USD fell 0.35% to 0.5880, reflecting classic risk-off positioning. The Swiss franc and Japanese yen outperformed as traditional safe havens, with USD/CHF declining to 0.8950. Technical analysis shows EUR/USD testing critical support at 1.0800, with a break below potentially accelerating losses toward 1.0750. Sentiment indicators suggest defensive positioning could persist until clearer signals emerge from central banks or geopolitical tensions ease, keeping pressure on risk-sensitive currencies.