Euro Surges Near Seven-Week High as Geopolitical Tensions Ease

The euro has held firm near its seven-week high as easing geopolitical tensions improved risk sentiment.

Oil prices plummeted due to optimism that diplomatic efforts could end the US-Iran conflict, easing concerns over inflationary pressures.

Qatar announced that mediators were making progress in negotiations, while US Treasury Secretary Scott Bessent stated a deal to reopen the Strait of Hormuz could be reached as early as Tuesday or Wednesday.

The eurozone's economy expanded 0.4% in the second quarter, exceeding expectations and marking the strongest growth since early 2025, while annual inflation accelerated to 2.9% in July with both core and services inflation strengthening.