2026.08.1008:11:31UTC+00Euro Firms at Over 3-Week High

The euro held above $1.155, hovering near a three-week high, as investors weighed conflicting signals from the US and Iran regarding the potential reopening of the Strait of Hormuz. Iran’s foreign minister said an agreement with Oman to establish a shipping corridor through the strait was “very close,” while warning that such a deal would not lead to an immediate normalization of shipping flows. At the same time, the outlook for the Euro Area has brightened, with recent signs of economic resilience prompting analysts to adopt a more upbeat view on growth. Second estimates due later this week are expected to confirm that the Eurozone economy expanded by 0.4% in Q2, the strongest quarterly performance since early 2025. Looking ahead, growth is forecast to cool in the near term before gradually regaining momentum. On the monetary policy front, the European Central Bank kept interest rates on hold in July after a 25 bps hike in June, its first increase in three years, while expectations for an imminent Federal Reserve rate rise have softened following weaker-than-forecast US employment data.