EUR/USD and GBP/USD Eye Flash PMIs Amid US-Iran Geopolitical Risks

Major forex pairs including EUR/USD and GBP/USD face a session dominated by flash PMI releases and geopolitical uncertainty surrounding US-Iran developments. The European session features flash PMIs for major Eurozone economies and the UK, while the American session brings US flash PMIs. Market analysts note the PMI data is unlikely to shift expectations for the ECB or Bank of England, as both central banks remain primarily focused on inflation metrics when guiding monetary policy decisions. Traders are advised that markets may largely discount the PMI readings unless significant deviations from consensus occur, given that attention remains firmly fixed on US-Iran geopolitical tensions which carry risk-off implications for currency markets. The geopolitical backdrop could drive safe-haven flows into JPY and CHF if tensions escalate, while risk-sensitive currencies may face headwinds. For positioning, traders should monitor both the data releases and any geopolitical headlines, as the interplay between economic fundamentals and risk sentiment will likely determine intraday direction across major pairs.