The USD experienced a pullback due to optimism over a potential US-Iran deal, which offset upward pressure from stronger US inflation data. Simultaneously, the EUR strengthened as markets adjusted expectations for the ECB's rate hike path in light of geopolitical risks.
Key Takeaways
- 1.Optimism surrounding a potential US-Iran peace deal has eased safe-haven demand for the USD.
- 2.The ECB maintains a data-dependent stance, keeping the door open for further hikes contingent on Middle East risks.
Table of Contents
- USD: US-Iran deal optimism offsets support from stronger US PPI report
- EUR: ECB leaves door open to further hikes dependent on Middle East risks
- KEY RELEASES AND EVENTS
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Authors
Lee Hardman
Securities
USDBrent Crude
Themes
Geopolitical De-escalationCentral Bank Policy Divergence
Regions
Middle EastEuropeUnited StatesIranGermany