EUR/USD Faces Uncertainty as Eurozone GDP Data Meets US-Iran Geopolitical Risk

EUR/USD is trading in a cautious range during Friday's session as markets digest a light economic calendar dominated by the final Eurozone Q4 2025 GDP revision. The data, now considered largely stale as Q1 2026 nears its conclusion, is expected to generate minimal market reaction. Traders are instead focused on the escalating US-Iran conflict, which has become the primary macro driver shaping risk sentiment and currency flows. The geopolitical tensions are creating elevated uncertainty across major pairs, with safe-haven currencies like the US dollar, Japanese yen, and Swiss franc likely to benefit from risk-off positioning. The European session offers limited catalysts beyond the GDP print, leaving EUR/USD vulnerable to headline-driven volatility stemming from developments in the Middle East. Near-term price action may remain range-bound in the absence of fresh economic data, though any escalation in the conflict could trigger sharp moves. Traders should exercise heightened caution and monitor geopolitical headlines closely, as sudden shifts in risk appetite could dominate intraday direction across all major forex pairs.