Risk currencies gain, EUR/USD supported by strong German Ifo and US-Iran hopes

Risk sentiment improved through the European session as the S&P 500 rallied on hopes of a US-Iran diplomatic breakthrough ahead of Jackson Hole, lifting high-beta currencies and easing haven demand for the dollar, yen and Swiss franc. European data was mixed but skewed constructive for the euro: Germany's August Ifo business climate index printed at 88.8 versus 87.2 expected, while German Q2 final GDP was revised up to +0.3% q/q from the +0.2% preliminary reading. France's August consumer confidence disappointed at 86 against 87 expected. Crypto markets added to the improved tone, with ETF inflows, Ethereum demand and US regulatory progress lifting sentiment. Geopolitical de-escalation headlines also weighed on oil-linked risk premia, a factor relevant for CAD and NOK crosses. With sizeable FX option expiries for the 10am New York cut capping intraday ranges, traders are positioning cautiously into Jackson Hole, where Federal Reserve commentary on the rate path remains the dominant near-term catalyst for EUR/USD and broad dollar direction.