The currency pair reached a multi-week high as geopolitical optimism and US inflation data drive market sentiment.
EUR/USD climbed to 1.1560, marking its highest level in weeks, as optimism over potential Middle East conflict de-escalation buoyed risk appetite. The pair’s gains were tempered by lingering uncertainty, with delays in negotiations keeping traders cautious.
Prior to this rally, the pair had traded in a narrow range, reflecting mixed signals from US economic data and geopolitical developments. Market participants are now eyeing upcoming US inflation figures for further direction.
The immediate reaction saw modest gains, though broader market sentiment remains sensitive to inflation trends and geopolitical risks.