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04.08.202608:14:27UTC+00Euro Holds Near Seven-Week High

The euro traded just above $1.15, hovering near its highest level since June 16 as easing geopolitical tensions bolstered risk appetite. The currency found support after US President Donald Trump called off planned strikes on Iran, indicating that a diplomatic resolution to the conflict remained possible, even as uncertainty lingered following Tehran’s denial of any ongoing or planned negotiations. The common currency was further 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 expanded 0.4% in the second quarter, double the forecast pace and the strongest growth since early 2025. At the same time, annual inflation accelerated to 2.9% in July, with both core and services inflation also gaining momentum.

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