The currency pair rises as USD weakens after US President Trump halts military action against Iran amid peace talks.
EUR/USD advanced 0.36% to approach 1.1600 as the US dollar retreated following President Trump’s decision to cancel planned strikes on Iran. The move came as Washington and Tehran reportedly neared a peace agreement, easing geopolitical tensions.
The pair had traded lower earlier in the session, with technical indicators like the RSI signaling bearish momentum. However, the sudden shift in US-Iran relations provided a near-term boost to the euro against the greenback.
Markets reacted swiftly to the news, with the dollar index turning negative on the day as risk sentiment improved.