• EUR/USD declines to near 1.1590 as Iran’s retaliation against US attacks near Bandar Abbas has dampened market mood.
• The IRGC attacks US military bases and threatens a more decisive response if it attacks again.
• Investors await the US-Germany inflation data.

The Euro (EUR) slides 0.3% to near 1.1590 against the US Dollar (USD) during the Asian trading session on Thursday. The major currency pair faces intense selling pressure as market sentiment turns risk-averse, following Iran’s retaliation against United States (US) attacks near Bandar Abbas airport, Tasnim agency reported.

As of writing, S&P 500 futures are down 0.3% below 7,500, reflecting a sharp dent in investors’ risk appetite. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps over 0.3% to near 99.53.

Earlier in the day, the Fars News Agency reported that three explosions were heard east of Bandar Abbas and air defenses were activated for several minutes.

In response, Iran’s Islamic Revolutionary Guard Corps (IRGC) has attacked US military bases and has threatened ‘a more decisive’ response if Washington attacks again.

The exchange of attacks between both nations has dented optimism towards a permanent deal. Earlier this week, US officials, including President Donald Trump, expressed confidence that a deal could be announced soon.

Meanwhile, investors await the US Personal Consumption Expenditure Price Index (PCE) data for April and the preliminary German Harmonized Index of Consumer Prices (HICP) data for May, which will be released on Thursday and Friday, respectively.

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