Euro Might Not Benefit if U.S.-Iran Agree Lasting Peace Deal -- Market Talk

1429 GMT - The stronger correlation between oil prices and inflation expectations for the eurozone compared to the U.S. casts doubts on whether the euro would benefit from lasting U.S.-Iran peace deal, Commerzbank's Michael Pfister says. "While Federal Reserve [interest-rate] expectations have recently decoupled from the oil price, ECB expectations remain tied to inflation risks." Earlier this month when oil prices rose again, one-year euro-area inflation expectations climbed but U.S. expectations dropped. Fed rate rise expectations look ambitious and it's unclear whether this will change in the event oil prices fall, he says. Until that changes, the euro could struggle to rise versus the dollar, he says. The euro rises 0.1% to $1.1393. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 29, 2026 10:29 ET (14:29 GMT)