Euro Faces Fresh Downside Risk as U.S.-Iran Ceasefire Remains Uncertain: ING Strategist

According to Francesco Pesole, ING's foreign exchange strategist, as of July 27, the euro faces renewed downside risk despite oil price declines following the U.S.-Iran ceasefire. Pesole stated that the euro's rise above 1.14 appears "somewhat overly optimistic" given the lack of clear signs of de-escalation. Any renewed military strikes could push Brent crude back to 100 per barrel and send the euro below 1.1380, he noted. The strategist also cited potential dollar demand ahead of the Federal Reserve's decision on Wednesday and elevated natural gas prices as additional headwinds for the euro.
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