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      EUR/USD Rises Above 1.17 Following US-Iran Ceasefire Announcement

      The US dollar experienced a significant decline after former President Donald Trump announced a two-sided ceasefire agreement between the US and Iran, set to last for two weeks. This announcement, made on Truth Social, has led to a shift in market sentiment, with traders increasingly optimistic about risk assets. Negotiations are scheduled to begin on Friday in Islamabad, and there is potential for an extension if both parties agree to continue discussions.

      In response to the ceasefire, market expectations for Federal Reserve rate cuts have risen, with traders now anticipating 14 basis points of easing by the end of the year, a notable increase from previous expectations of no cuts. Despite the positive developments, there remains a risk that hostilities could resume, which would likely reverse the dollar's recent losses.

      The euro also saw gains, with the EUR/USD pair breaking above the 1.17 level. The European Central Bank (ECB) has maintained a hawkish stance, although it is monitoring the situation closely. Recent economic data indicated rising inflation alongside weaker economic activity, prompting some traders to adjust their rate hike expectations from three to two hikes by year-end, contingent on the outcome of the ongoing negotiations.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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