News
Currency Markets · Dollar · Euro · Iran War
The euro rose 0.4% to $1.1806, reaching its highest level since February 27, as President Trump hinted at renewed U.S.-Iran peace talks, signaling a potential de-escalation of the Iran war and the reopening of the Strait of Hormuz.
Societe Generale's Kit Juckes forecasts the euro could rise further towards $1.20, driven by expected interest rate hikes from the European Central Bank in June and September, while the Federal Reserve maintains unchanged rates. This scenario, already priced into the market, supports a continued upward trend for the euro-dollar pair.
Concurrently, the dollar fell to a six-week low against a basket of currencies, reflecting diminished safe-haven demand and lower oil prices, with Bank of America's survey indicating investors closed earlier bets against the dollar's decline. ING's Francesco Pesole emphasizes that clear progress in U.S.-Iran talks is necessary for the euro to sustainably surpass $1.180, while also noting that Bank of England Governor Andrew Bailey's speech could dampen sterling's value if he signals a pause in rate hikes.
Bitcoin also saw a 1.8% rise to $74,500.86, benefiting from improved risk sentiment.
