USD weakens broadly as Dow Jones rebounds on Middle East ceasefire news
The US dollar has declined against major currencies, with EUR/USD rising 0.4% to 1.0820 and GBP/USD advancing 0.5% to 1.2650, as risk appetite improved following ceasefire developments in the Middle East. The Dow Jones Industrial Average surged 1.2% despite reports of ceasefire violations, suggesting markets are focusing on de-escalation prospects. The dollar index (DXY) fell 0.6% to 104.20, breaking below its 20-day moving average. Oil prices tumbled 3.5% with WTI crude dropping to $79.80, reducing inflationary pressures and dollar support. The pound outperformed, benefiting from both dollar weakness and positive UK economic sentiment. Technical analysis shows EUR/USD targeting resistance at 1.0850, while GBP/USD eyes the 1.2700 level. The improved risk environment has reduced safe-haven demand for the dollar, with traders rotating into higher-yielding currencies. Near-term dollar weakness may persist if geopolitical tensions continue to ease.
Related Symbols:
EURUSD
GBPUSD
DXY
This is a summary of the original article by investing.com. To read the complete article, please visit the source website:
Read Full Article at investing.comNews data provided by Marketaux. ForexSentiment.live provides this summary as a convenience with proper attribution to the original source. The full article is available at the original publisher's website.
