EUR/USD, GBP/USD Slide as Geopolitical Tensions Fuel Dollar Demand

European currencies extended their losses against the US dollar on Monday, with GBP/USD deepening its decline and EUR/USD remaining firmly under pressure as escalating geopolitical tensions drove investors toward safe-haven assets. The British pound led the selloff among major European currencies, reflecting heightened risk aversion amid the intensifying Middle East conflict. The euro also struggled to find buyers, weighed down by a combination of dollar strength and limited upside catalysts from European economic data. Safe-haven demand for the US dollar and dollar-denominated liquid assets has been the dominant theme, sidelining any positive fundamental factors for European economies. Technically, GBP/USD faces immediate support near recent lows, with a break lower potentially accelerating the bearish move. EUR/USD remains capped below key resistance levels, and sustained geopolitical uncertainty could push the pair toward lower support zones. Traders should watch for any de-escalation signals that might trigger a relief rally in European currencies, though the near-term bias remains firmly in favor of the dollar.