EUR/USD Rebounds Amid US-Iran Uncertainty and Fed Policy Ambiguity
The EUR/USD pair closed July with modest gains near the 1.1500 mark, adding over 1.1% in the last trading week.
However, price action throughout the month was dull due to persistent uncertainty surrounding developments in the Middle East and the US Federal Reserve's monetary policy path.
An escalation of the US-Iran war initially spurred USD demand at the beginning of the week, but this was quickly overshadowed by the Fed's decision to leave interest rates unchanged.
Chairman Kevin Warsh's ambiguous comments on inflation and monetary policy further contributed to the uncertainty, causing investors to question his commitment to curb inflation.
The EUR/USD pair partially recovered its bullish poise, with the 20-day Simple Moving Average (SMA) at 1.1430 serving as initial resistance.