24.06.2025 08:58
The Euro surged against the US dollar on Tuesday, fueled by a global increase in risk appetite following a reported ceasefire between Iran and Israel. This relief rally saw the EUR/USD pair break through a bullish flag formation, aiming for resistance levels at 1.1630 and 1.1700. The common currency's gains, reaching levels slightly above 1.1600, represent a substantial 1.30% increase from Monday's lows.
A significant factor contributing to the Euro's strength is the sharp decline in oil prices. Crude oil futures experienced a near 3% drop on Tuesday, adding to Monday's substantial 13% sell-off. This price reduction, with WTI crude falling from over $77.00 to $63.00 per barrel, benefits the Eurozone, a net importer of oil, by alleviating inflationary pressures on its already fragile economy. The twelve-day conflict, involving a US strike on Iranian nuclear sites and subsequent missile exchanges, concluded with an undisclosed ceasefire agreement, triggering a flight to riskier assets and simultaneously weakening the safe-haven US dollar.
Despite the market's positive response to the ceasefire, uncertainty remains. While the market celebrates the apparent de-escalation, Iran launched another missile barrage at Israel earlier Tuesday, highlighting the ongoing geopolitical tensions. Further market movements are likely to be influenced by the upcoming testimony of Federal Reserve Chairman Jerome Powell before Congress, scheduled for 14:00 GMT. This testimony is anticipated to provide insights into the US economic outlook and the Federal Reserve's future policy decisions.
The Euro’s strength was particularly pronounced against the US dollar, showing a 0.26% increase. Other major currency pairs also saw movement, with the Euro appreciating against the British Pound (-0.35%), Japanese Yen (-0.62%), Canadian Dollar (-0.10%), Australian Dollar (-0.59%), New Zealand Dollar (-0.65%), and Swiss Franc (-0.05%), reflecting the broader shift in global market sentiment. The data demonstrates the Euro's considerable gains on Tuesday, driven by multiple factors including the geopolitical situation, the decline in oil prices and investor sentiment.
