Euro holds its ground despite geopolitical tensions

The European common currency was stable in today's trading session, showing only minor changes against the US dollar. Following slight losses in early trading, due to the initial flight to the US dollar deemed safe after reports of Israeli attacks on Iran, the euro recovered to nearly the previous day's level. On Thursday, the European Central Bank had set the reference rate at 1.0679 dollars; this morning, the exchange rate settled at 1.0634 dollars. Overnight, the dollar had briefly strengthened after reports of Israeli attacks on Iran caused unrest in the markets. However, early in the morning, Iranian state media, through their news agency IRNA, broadly denied widespread attacks and denied any damage. This denial, along with further developments, allowed the euro to almost completely recover its initial losses and stabilized the currency pair. As the markets continue to focus on geopolitical events, there are hardly any significant economic data available shortly before the weekend that could serve as further guidance for investors. Therefore, throughout the day, it will be important to closely monitor how the interplay between security-oriented investment strategy and currency movements continues.