Euro extends gains past 1.1400 as safe-haven dollar weakens on Iran deal hopes

EUR/USD built on a modest bullish gap at the open and pushed back above the 1.1400 level during Monday’s Asian session. The move was fueled by a broadly weaker US dollar, which faced selling pressure as hopes for a diplomatic resolution to the five-month US-Iran standoff resurfaced.

The greenback’s safe-haven appeal faded, allowing the euro to extend its upward momentum. Renewed diplomacy talk encouraged risk-on flows and diminished demand for defensive assets.

The pair’s advance comes amid thin liquidity typical of the Asian hours, with traders closely monitoring geopolitical headlines for further direction.