EUR/USD Rises 0.4% to 1.1555 as Dollar Weakens on Iran-US Geopolitical Uncertainty

EUR/USD has climbed 0.4% to 1.1555 during early Monday trading, as broad-based dollar weakness coincides with geopolitical uncertainty surrounding Iran-US relations. Iran announced it has formulated a response to the United States but will reveal details at a later time, creating a wait-and-see atmosphere across markets. Despite the geopolitical overhang, risk appetite remains cautiously optimistic, with S&P 500 futures up 0.4% on the session. The dollar is selling off across the board, exacerbated by thin liquidity conditions as European traders remain absent, likely due to a holiday. The mixed reception to headlines from the rumour mill over the past 24 hours has kept markets from making decisive moves in either direction. Traders should monitor upcoming Iran-US developments closely, as any escalation could trigger safe-haven flows back into the dollar, while a diplomatic resolution could extend the current risk-on positioning. Near-term EUR/USD resistance sits around the 1.1600 psychological level, with support near 1.1500.