EUR/USD Holds Near 1.1630 as Iran Tensions Renew and Euro Data Weigh

EUR/USD trades around 1.1630 after renewed US-Iran strikes lifted safe-haven dollar demand and pushed the pair back below 1.1650. The currency had rebounded from a six-week low of 1.1598 on May 20 amid fading ceasefire hopes and oil drops, but weak Eurozone PMIs (composite 47.5) and softer trade data capped gains while hotter US CPI reinforced Fed hawkishness. Despite near-term geopolitical and policy headwinds, a May 27 bank survey points to gradual appreciation toward 1.20-1.24 by 2027 driven by expected Fed cuts and firmer Eurozone growth.