EUR/USD, GBP/USD Rally as USD Dumps on US-Iran Peace Repricing

EUR/USD and GBP/USD have surged while USD/CAD has declined as the US dollar sells off broadly amid a significant peace repricing tied to de-escalating US-Iran-Israel tensions. The greenback, which had benefited from elevated geopolitical risk premiums during the height of the conflict, is now giving back those gains as markets anticipate a diplomatic resolution. The peace repricing has triggered a broad unwinding of safe-haven USD positioning, with EUR/USD pushing higher and GBP/USD gaining momentum as traders rotate into risk-sensitive assets. USD/CAD has also moved lower, reflecting both dollar weakness and stabilizing oil market dynamics. Key technical levels are now in focus: EUR/USD faces resistance at recent swing highs, while GBP/USD is testing upper range boundaries. USD/CAD support levels are being probed as bearish dollar momentum intensifies. Traders should monitor Thursday's US-Iran negotiation outcomes closely, as any failure to reach an agreement could trigger a sharp reversal in current positioning and restore dollar strength.