EUR/USD Steady as Light EU Data & US-Iran Talks Dominate Sentiment

EUR/USD is trading in a narrow range during Friday's European session as the economic calendar offers little in the way of market-moving releases. The session's primary data points — Italian and Eurozone trade balance figures — are considered low-tier and unlikely to shift European Central Bank policy expectations or drive significant price action. Market attention has instead pivoted to geopolitical developments, with US-Iran negotiations providing a cautiously optimistic backdrop. Adding to the risk-on tone, Israel and Lebanon initiated a 10-day ceasefire on Thursday to facilitate further diplomatic talks, easing some of the Middle East risk premium that has periodically supported safe-haven flows into the US dollar and Swiss franc. With no high-impact US data scheduled for the session either, traders are likely to see subdued volatility and range-bound conditions across major pairs. The geopolitical de-escalation narrative could weigh modestly on safe-haven demand, offering mild support to risk-sensitive currencies. Traders should monitor any headline developments from the US-Iran front, as unexpected setbacks could quickly reverse sentiment and trigger sharp moves.