Middle East Conflict Warrants Caution on Euro -- Market Talk

0833 GMT - The resumption of military strikes in the Iran war is a reminder to remain cautious on the euro versus the dollar, ING's Francesco Pesole says in a note. For the euro to secure a sustained rise above $1.15 for the euro this would require markets to scale back U.S. interest-rate rise expectations through data or Federal Reserve communications, along with stabilizing risk sentiment, he says.However, if markets are right to maintain a broadly optimistic view on a de-escalation in the conflict, there is a good chance the euro has already bottomed out against the dollar, he says. The euro rises 0.1% to $1.1399 after reaching a one-month low of $1.1353 on Tuesday, LSEG data show. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 29, 2026 04:33 ET (08:33 GMT)