US-Iran Conflict Drives Currency Outlook

The US-Iran conflict and its impact on oil prices are keeping inflation concerns alive, supporting currencies like the Canadian dollar while putting pressure on energy importers like Japan.

Central banks are still in focus, with US inflation data and a gathering of central bankers at Jackson Hole likely to set the tone for August.

The euro has climbed above $1.15 due to a softer US dollar, with an expected European Central Bank rate rise in September offering further support through a quiet August.