Euro Stalls at Multi-Month Highs Amid Hawkish Fed and Iran Risks
The Euro has paused in its upward momentum after reaching its highest level since late May. The EUR/USD pair tested the 1.1700 threshold, but its advance was capped by a stabilization of the US Dollar driven by hawkish FOMC Minutes and safe-haven demand linked to Iran risks.
The Federal Reserve's hawkish stance and ongoing inflation concerns, combined with geopolitical tensions over the Strait of Hormuz, have provided support to the Greenback. However, market expectations that the European Central Bank will continue its tightening cycle at the upcoming September policy meeting have kept downside pressure on EUR/USD contained.
The technical picture suggests a bullish signal for EUR/USD, with the recent breakout above the 200-day Simple Moving Average and the 61.8% Fibonacci retracement of the April-June decline. Traders are now turning their attention to upcoming US economic data, looking for fresh catalysts that could influence the pair's next directional move.