EUR/USD Stays Bearish as Eurozone Inflation Rises Amid US-Iran War Tensions

EUR/USD maintains a bearish bias as geopolitical tensions from the ongoing US-Iran conflict continue to dominate forex market dynamics. Eurozone headline inflation picked up in March, driven by surging energy prices linked to Middle East hostilities and disruptions near the Strait of Hormuz. Goldman Sachs noted that FX markets have yet to fully price in the energy shock, suggesting further volatility ahead. ECB board member Muller warned that the central bank's current baseline projection may already be too optimistic, hinting at potential policy reassessment. European equities remained relatively calm on the session but are poised to close out one of the worst monthly performances in recent years. On the upside, reports that President Trump is open to ending the conflict without escalating near Hormuz provided a brief lift to risk assets, with the Nasdaq bouncing on renewed deal optimism. Traders should monitor US-Iran negotiation developments closely, as any breakthrough or breakdown could trigger sharp moves in EUR/USD. Key focus remains on energy price trajectories and their pass-through effects on inflation and central bank policy.