Euro Strengthens Amid Geopolitical Tensions and Oil Price Volatility

The euro has reached its strongest level in over three months, holding above $1.165 as investors anticipate a more hawkish European Central Bank (ECB) policy amidst geopolitical tensions.

Oil prices remain high at above $90 per barrel, fueled by the US-Iran conflict and its impact on energy prices, which may lead to further supply constraints for refined fuels.

The ECB is widely expected to raise interest rates in September, following its June tightening, with markets seeing a 25% chance of reaching 3% by March 2027 and 60% by September.