USD Weakens as Risk-On Wave Hits Markets on US-Iran Ceasefire Deal

The US dollar is facing broad selling pressure as a major risk-on wave sweeps through global markets following the announcement of a two-week ceasefire between the US and Iran. US President Trump confirmed the agreement overnight, with Iran agreeing to come to the negotiating table — a significant development that has shifted market sentiment dramatically. The ceasefire carries stronger credibility than prior attempts, as traders perceive the conflict is winding down rather than merely pausing. Risk-sensitive currencies such as AUD, NZD, and emerging market FX are expected to benefit at the expense of traditional safe havens including the US dollar, Japanese yen, and Swiss franc. Oil prices are likely retreating on reduced geopolitical risk premiums, further undermining USD strength tied to energy-related flows. Traders should monitor whether the ceasefire holds and watch for follow-through in USD/JPY and EUR/USD as risk appetite potentially sustains momentum. Key resistance for EUR/USD and support for USD/JPY will be tested if the optimistic tone persists through the week.