Euro Eyes ECB as US Dollar Retreats on Red Sea Tensions

The euro is in focus as markets await the European Central Bank's next move, while the US dollar has retreated even as oil prices climb and US Treasury yields rise.

Rising geopolitical risk from Houthi attacks on tankers in the Red Sea has pushed Brent crude higher, but the dollar failed to benefit from the yield uptick, leaving EUR/USD in a consolidative stance.

Traders are now weighing the impact of the Red Sea disruptions on global supply chains and the potential policy response from the ECB.