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Dollar edges lower as US-Iran ceasefire hopes temper safe-haven demand

The US Dollar Index (DXY) was down 0.1% near 100.90, while S&P 500 futures rose 0.45% amid risk-on sentiment.

Reported · Written up by our desk · Major Pairs

The US dollar traded marginally lower against major currency peers in Tuesday’s European session as safe-haven demand cooled on hopes for a US-Iran ceasefire. FXStreet said the US Dollar Index, which tracks the greenback versus six major currencies, was last down 0.1% near 100.90.

FXStreet linked the currency shift to a reported 10-day cessation of strikes proposal from mediators and Tehran’s confirmation of receiving it, along with hopes of reviving an interim deal. The outlet also noted that ceasefire expectations contributed to a steep correction in oil prices.

On the market backdrop, FXStreet reported that S&P 500 futures were up 0.45% to around 7,477, reflecting risk-on sentiment. The Dollar Index spot was described as broadly sideways but “sticky” to its 20-day exponential moving average near 100.83.

Looking ahead, FXStreet said investors were awaiting US S&P Global Purchasing Managers’ Index data for July, due Friday. The Manufacturing PMI is expected at 54.5 versus 53.9 in June, while Services PMI is forecast at 51.0 versus 51.2, as the index remains range-bound with resistance near 101.13 and the 20-day EMA around 100.83 acting as nearby support.

Latest closeS&P 500 7,533.77 ▼0.5%|Dollar index 100.71 ▲0.2%

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