Risk-On Sentiment Lifts Financial Markets Amid US-Iran Strike Halt

Financial markets shifted towards risk-on sentiment at the start of the week as investors welcomed news that the US and Iran had halted strikes. This led to a broad move towards riskier assets, with major US stock index futures rising by up to 1.4%.

The dollar weakened, with the US Dollar Index (DXY) declining by over 0.2%. The EUR/USD currency pair benefited from this shift, opening with a bullish gap and trading around 1.1400. This move marked a stronger start to the week for the euro against the US dollar.

GBP/USD held its ground at the beginning of the week, despite losing nearly 1% in the previous week. The British pound's performance will remain in focus as investors prepare for the Bank of England's upcoming monetary policy announcement on Thursday.