A breakthrough agreement between the US and Iran boosts risk appetite, lifting the Euro to its highest level in weeks.
The EUR/USD pair climbed to 1.1610 in early European trading on Monday, extending gains after reports of a US-Iran deal to reopen the Strait of Hormuz. The agreement eased geopolitical tensions, improving market sentiment and supporting the Euro against the US Dollar.
Prior to the announcement, the pair had traded near 1.1580, with investors monitoring Middle East developments. The Strait of Hormuz is a critical chokepoint for global oil shipments, and disruptions have previously triggered volatility in currency and commodity markets.
The move reflects broader risk-on flows, though further details of the agreement remain pending.