EUR/USD Soars as Trump Cancels Iran Strikes, Fed Interest Rate Decision Supports Rally

The EUR/USD pair experienced a significant surge in recent days after US President Donald Trump cancelled his planned strikes against Iran. This move, coupled with last week's Federal Reserve interest rate decision and the latest US PCE data, contributed to the currency's rally.

Trump's decision to pause the attacks, citing interventions from Middle East countries, led to a decline in oil prices. The recent increase in the Personal Consumption Expenditures Price Index (PCE) also supported the pair's rise, with the index increasing 3.7% in the 12 months through June.

The EUR/USD pair has been on an upward trend since its low point this year, gaining over 1.5%. Technical analysis suggests that the pair may continue to rise, potentially reaching 1.1622 as traders attempt to fill a fair value gap formed in June.