Euro Holds Close to 7-Week High

2026-08-06 08:12 By Agna Gabriel 1 min. read

The euro changed hands at around $1.154, remaining close to a seven-week high as easing energy prices supported expectations that inflationary pressures in the Euro Area will continue to moderate.

Sentiment improved after Iran and Oman agreed on a proposed shipping corridor through the Strait of Hormuz, raising hopes that the critical waterway could soon reopen and help restore Middle Eastern energy supplies.

Brent crude remained below $80 per barrel, reinforcing expectations that lower energy costs could reduce pressure on central banks to tighten monetary policy further.

Markets now fully price in just one additional European Central Bank rate hike by year-end, with roughly a 40% probability of a second increase, after the ECB left interest rates unchanged at its latest meeting.

Meanwhile, stronger-than-expected German factory orders in June added to signs that Europe's largest economy may finally be gaining momentum.



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Euro Holds Close to 7-Week High
The euro changed hands at around $1.154, remaining close to a seven-week high as easing energy prices supported expectations that inflationary pressures in the Euro Area will continue to moderate. Sentiment improved after Iran and Oman agreed on a proposed shipping corridor through the Strait of Hormuz, raising hopes that the critical waterway could soon reopen and help restore Middle Eastern energy supplies. Brent crude remained below $80 per barrel, reinforcing expectations that lower energy costs could reduce pressure on central banks to tighten monetary policy further. Markets now fully price in just one additional European Central Bank rate hike by year-end, with roughly a 40% probability of a second increase, after the ECB left interest rates unchanged at its latest meeting. Meanwhile, stronger-than-expected German factory orders in June added to signs that Europe's largest economy may finally be gaining momentum.
2026-08-06
Euro Climbs to Near Seven-Week High on Easing Geopolitical Tensions
The euro strengthened toward $1.155, its highest level since June 16, as improving risk sentiment lifted demand for the single currency amid growing optimism that the US and Iran could reach a deal to end their five-month conflict and reopen the Strait of Hormuz. Crude oil prices have fallen about 10% this week after US President Donald Trump said the two countries were engaged in "very good discussions," raising hopes of a recovery in Middle Eastern energy supplies. Lower energy prices have eased concerns over inflation and weaker economic growth, reinforcing expectations that the European Central Bank will take a gradual approach to policy tightening. Markets now fully price in just one additional ECB rate hike by year-end, with around a 40% chance of a second. The ECB raised rates in June but left policy unchanged at its latest meeting.
2026-08-05
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