EUR/USD Edges Below 1.1700 to 1.1690 on Iran-UAE Conflict, Dollar Safe-Haven Bid

EUR/USD traded around 1.1690 in early Asian hours on May 4, edging below the 1.1700 level amid heightened geopolitical risks from Iran's attack on the UAE and US actions in the Strait of Hormuz. The selloff started May 3 with US tariffs on EU vehicles rising to 25% from 15%, pressuring the pair from ~1.1720 and firming the USD on Middle East tensions. May 4 saw a sharp 1.2% plunge—largest in three months—briefly below 1.0800, lifting DXY to a three-month high and gold above $2,400, exacerbated by Eurozone GDP forecasts at ~0.8%, ECB rates (~3.75%) versus Fed's 5.25-5.50%. Bundesbank's Nagel suggested potential ECB hikes for support.