Euro Surges Past $1.1550 Amid Soft US Data and Iran Deal Hopes

The Euro strengthened above $1.1550 against the US dollar as softer-than-expected US economic data cooled tensions in the Middle East and boosted risk sentiment.

Iran's Foreign Ministry spokesperson Esmaeil Baghaei said that Iran and Oman are close to finalizing a proposed framework for commercial shipping through the Strait of Hormuz, but cautioned that such an agreement would still not automatically open the waterway.

Data released by Automatic Data Processing (ADP) showed that employment in the US private sector increased by 44K in July, below the market consensus of 70K. The Services Purchasing Managers Index (PMI) improved to 54.1 in July from 54.0 in the previous month, but fell short of expectations at 54.5.

The Euro held steady as PMI data showed only marginal growth, according to strategists at Scotiabank, who noted that the Euro's recovery is underpinned by modestly better survey data and still-constructive sentiment.