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Euro rises against dollar as risk-on sentiment dents safe-haven demand

EUR/USD was up 0.36% near 1.1410, while the US Dollar Index fell 0.25% to about 101.20 amid improved risk appetite.

Reported · Written up by our desk · Major Pairs

The euro strengthened against the US dollar during European trading on Monday, with EUR/USD up 0.36% to near 1.1410, as renewed risk-on sentiment reduced demand for the dollar’s safe-haven appeal, according to FXStreet.

Risk appetite was also supported by a perceived de-escalation in US-Iran tensions, with a pause in attacks reported over the weekend as the targeted list was exhausted, and US ambassador to the United Nations Mike Waltz indicating President Donald Trump wanted negotiations to have room.

Market tone in the US also reflected the shift, with S&P 500 futures up nearly 1% to around 7,485, while the US Dollar Index, which tracks the greenback versus six major currencies, was 0.25% lower near 101.20.

Ahead of further catalysts, investors are looking to the Federal Reserve’s policy announcement on Wednesday, where rates are expected to remain in the 3.50% to 3.75% range, and to Eurozone preliminary HICP inflation data for July that could influence expectations for the ECB.

Latest closeS&P 500 7,411.98 ▲0.1%|EUR/USD 1.137 ▼0.3%|Dollar index 101.47 ▲0.0%

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