Euro Holds Firm Near Seven-Week High on ECB Rate Outlook

2026-08-04 14:53 By Joana Ferreira 1 min. read

The euro traded slightly above $1.15, hovering near its highest level since June 16 as easing geopolitical tensions improved risk sentiment.

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

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

Meanwhile, stronger-than-expected eurozone data continued to support expectations that the European Central Bank could raise interest rates at its next meeting in September.

The bloc's economy expanded 0.4% in the second quarter, twice the expected pace and the strongest growth since early 2025, while annual inflation accelerated to 2.9% in July, with both core and services inflation also strengthening.



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Euro Holds Firm Near Seven-Week High on ECB Rate Outlook
The euro traded slightly above $1.15, hovering near its highest level since June 16 as easing geopolitical tensions improved risk sentiment. Oil prices tumbled on optimism that diplomatic efforts could end the US-Iran conflict, easing concerns over inflationary pressures. Qatar said mediators were making progress in negotiations, while US Treasury Secretary Scott Bessent said a deal to reopen the Strait of Hormuz could be reached as early as Tuesday or Wednesday. Meanwhile, stronger-than-expected eurozone data continued to support expectations that the European Central Bank could raise interest rates at its next meeting in September. The bloc's economy expanded 0.4% in the second quarter, twice the expected pace and the strongest growth since early 2025, while annual inflation accelerated to 2.9% in July, with both core and services inflation also strengthening.
2026-08-04
Euro Holds Near Seven-Week High
The euro traded just above $1.15, hovering near its highest level since June 16 as easing geopolitical tensions supported risk sentiment. The currency drew support after US President Donald Trump called off planned strikes on Iran, signaling that a diplomatic resolution to the conflict remained possible, although uncertainty persisted after Tehran denied any ongoing or planned negotiations. The common currency was also underpinned by stronger-than-expected eurozone economic data, reinforcing expectations that the European Central Bank could raise interest rates at its next meeting. The eurozone economy grew 0.4% in the second quarter, twice the pace forecast and the strongest expansion since early 2025. Meanwhile, annual inflation accelerated to 2.9% in July, with both core and services inflation also picking up.
2026-08-04
Euro at Over Two-Week High as Middle East Talks Loom
The euro traded just above $1.15, hovering near its highest level since June 16, as improving risk sentiment followed a sharp decline in oil prices. Crude fell on hopes of a US-Iran agreement to reopen the Strait of Hormuz after President Donald Trump said fresh talks with Tehran would begin on Monday, easing fears of a broader Middle East conflict. The drop in oil prices led money markets to modestly scale back expectations for further European Central Bank tightening, although a rate hike by September remains largely priced in. At the same time, stronger-than-expected eurozone data continued to support the policy outlook. The bloc's economy expanded 0.4% in the second quarter, beating forecasts of 0.2% and marking its fastest growth since early 2025. Meanwhile, annual inflation accelerated to 2.9% in July, while core and services inflation also strengthened.
2026-08-03