The post EUR/USD falls to near 1.1700 due to safe-haven demand appeared on BitcoinEthereumNews.com.

EUR/USD extends its losses, trading around 1.1710 during the Asian hours on Monday. The pair loses ground as the US Dollar (USD) strengthens on safe-haven demand, driven by a renewed rise in geopolitical risks following the United States’ (US) capture of Venezuelan President Nicolas Maduro. CNN reported over the weekend that the US President Donald Trump administration ordered a “large-scale strike against Venezuela” and captured President Maduro to face charges, without congressional approval. Trump added that the US would oversee Venezuela until a safe, orderly, and judicious transition could take place. However, the upside of the US Dollar could be restrained due to expectations of two additional Federal Reserve rate cuts in 2026. Markets are bracing for US President Donald Trump to nominate a new Fed chair to replace Jerome Powell when his term ends in May, a move that could tilt monetary policy toward lower interest rates. The Euro (EUR) could find support against the Greenback as monetary policy paths diverge between the European Central Bank (ECB) and the US Federal Reserve (Fed). The ECB kept interest rates unchanged in December 2025 and signaled they are likely to remain on hold for an extended period. ECB President Christine Lagarde noted that heightened uncertainty makes it difficult to offer clear forward guidance on future policy decisions. Risk sentiment FAQs In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if…

---

Filed under: News - @ January 5, 2026 1:35 am