EUR/USD rises to 1.0845 as USD safe-haven appeal fades

EUR/USD has gained 0.3% to 1.0845 as the US dollar's safe-haven appeal diminished following the Israel-Iran ceasefire announcement, which also caused oil prices to slide 3.5%. The dollar index fell 0.4% to 104.20, marking its largest single-day decline in two weeks. EUR/HUF showed notable strength, advancing 0.8% as risk appetite improved across European markets. The sharp decline in oil prices, with WTI crude falling to $78.40, is expected to provide relief to the European Central Bank's inflation concerns. Technical analysis reveals EUR/USD breaking above the 20-day moving average at 1.0830, with next resistance at 1.0870. Support is established at 1.0820. The reduced geopolitical tensions have shifted market focus back to economic fundamentals and central bank policies. Traders are now positioning for this week's ECB officials' speeches and US economic data releases, which could provide further directional cues.