Daily Forex Analysis

The euro climbed to a fresh weekly high near 1.1610 on Tuesday as the US dollar weakened sharply after President Trump announced a ceasefire between Israel and Iran.

Markets opened the week gripped by fresh geopolitical risks after U.S. forces struck Iranian nuclear sites, prompting a wave of safe-haven demand. 

EUR/USD hovered near 1.1520 on Fed hawkishness and rising Middle East tensions, while demand offered potential support to the dollar.

The U.S. dollar strengthened on Thursday as the Fed signaled fewer rate cuts ahead, citing inflation risks and geopolitical uncertainty. EUR/USD fell near 1.1465, while the yen weakened and GBP/USD slipped toward 1.3410. 

Markets remained cautious on Wednesday as safe-haven flows supported the US dollar ahead of the Federal Reserve’s rate decision. 

Markets remained steady on Tuesday as investors awaited the Federal Reserve’s rate decision. While EUR/USD hovered near multi-year highs on easing Israel-Iran tensions, safe-haven demand lifted gold and silver. The yen weakened after the BoJ maintained its stance, and GBP/USD traded flat ahead of key UK inflation data. 

Markets began the week on a cautious note, with heightened tensions in the Middle East supporting demand for safe-haven assets such as gold and silver. Investor sentiment remained sensitive amid escalating conflict, particularly following Israel’s strikes on Iran, which have intensified regional uncertainty.

Markets turned risk-averse on Friday after Israel launched strikes on Iranian targets, escalating Middle East tensions. The US Dollar and Yen gained as safe-haven demand increased, while gold surged above $3,440. EUR/USD and GBP/USD retreated, pressured by the stronger dollar and geopolitical fears.