Euro Steadies as Oil Tensions Impact Rate Expectations

EUR/USD held steady on Friday as traders weighed competing central bank expectations and rising geopolitical risks.

Markets are reassessing how surging oil prices, driven by escalating tensions in the Middle East that have disrupted energy supplies through the Strait of Hormuz, may feed into inflation and alter ECB and Fed rate paths.

The pair remains in a narrow range as investors await further cues on monetary policy and the evolving situation in the region.