Risk-Positive Sentiment Boosts EUR/USD as US-Iran Tensions Ease
Investors reacted positively to news that the United States and Iran had halted strikes, turning market sentiment risk-positive at the beginning of the new week.
The development prompted a broad move toward riskier assets as investors assessed the broader economic outlook ahead of the Federal Reserve's upcoming policy meeting.
The US stock index futures reflected this improvement in investor sentiment, gaining between 0.8% and 1.4% on the day.
Meanwhile, the US Dollar (USD) Index declined by more than 0.2%, trading near 101.20 at the time of writing.
The combination of a weaker USD and improved risk sentiment typically lifts EUR/USD as capital rotates out of USD and into developed-market FX.
Taraget for EUR/USD is the 1.14 area, with potential to push higher if the risk-positive tone holds into the Fed week.