EUR/USD Subdued as Light European Data Yields to US-Iran Geopolitical Risk

EUR/USD is trading in a muted range during the early European session on Monday as the economic calendar offers little impetus for directional moves. Scheduled releases include the French trade balance and Italian PPI report, both considered low-tier data points unlikely to shift European Central Bank expectations or trigger meaningful price action. Market participants are largely sidelining traditional macro catalysts as attention remains firmly fixed on escalating US-Iran geopolitical tensions, which have become the dominant driver of risk sentiment across currency and commodity markets. The geopolitical overhang is supporting safe-haven flows into the US dollar, Japanese yen, and Swiss franc, while risk-sensitive currencies face headwinds. Traders should monitor headlines around the US-Iran conflict closely, as any escalation or de-escalation could produce sharp volatility spikes across major pairs. Near-term positioning is likely to remain cautious with thin liquidity amplifying potential moves. Risk management is paramount in the current environment as event-driven volatility supersedes scheduled data releases.