Israel-Iran Ceasefire Calms Global Uncertainty
President Trump announced a ceasefire agreement between Israel and Iran starting 7am IST. The ceasefire, called the “12 Day War” by the Trump administration, marks an end to escalating tensions. Iran’s symbolic strike on a US base in Qatar was followed by Israel’s ceasefire confirmation. Markets responded instantly, as global investors cheered the possibility of sustained peace. All parties appear motivated to maintain peace, improving geopolitical outlook and calming investor nerves.
Stocks Rise While Crude Oil Slides Sharply
Following the ceasefire, global stock markets surged. The S&P 500 rose to a level just 50 points below its all-time high. This bullish move reflects growing investor optimism and reduced geopolitical fear. Meanwhile, WTI Crude Oil fell sharply, first dropping below $71 and later below $65. This sharp decline reflects the decreased risk of supply disruptions in the Middle East. The decline in oil also reduces inflationary pressures, adding fuel to the equity market rally.
US Dollar Weakens, Gold Retreats as Risk Appetite Grows
The US Dollar is under pressure amid rising global optimism. Forex today shows the greenback losing ground across major pairs. Gold, typically a safe haven, has declined to fresh lows as investor demand fades. As risk appetite returns, assets like equities and higher-yielding currencies are gaining momentum. The Euro and Kiwi Dollar have seen increased buying interest as confidence returns to FX markets.
Unsatable US Dollar
Forex Market Sees Increased Volatility and Clear Trends
The New Zealand Dollar leads gains among majors, while the Swiss Franc remains the weakest. This puts the NZD/CHF pair in focus as traders chase trending moves. The EUR/USD is also climbing in line with its bullish long-term trend. Forex news June 24 indicates strong momentum across several currency crosses. Increased price action is being driven by relief from geopolitical tension and renewed risk interest.
PMI Data Adds to the Market Optimism
Flash Services and Manufacturing PMI data was released across four major economies. The USA, Germany, and the UK all posted better-than-expected numbers. France lagged with worse-than-expected data, but the overall tone remains optimistic. These results suggest economic resilience, supporting the risk-on environment. Stronger PMI data implies that global growth is holding steady despite recent shocks. This backdrop adds confidence for investors looking for risk opportunities in currency markets.
Also Read: Bitcoin Wobbles Below $99K as Tensions Flare in the Middle East
Focus Shifts to Canadian CPI and Powell’s Testimony
Canadian CPI data is due later today and will be watched for inflation insights. Following that, US Federal Reserve Chair Jerome Powell will testify before Congress. He will discuss the semiannual Monetary Policy Report and provide rate outlook signals. Markets expect Powell to maintain a cautious tone amid improving but uncertain data. Investors will look for clarity on future rate decisions and inflation trajectory. Any dovish language from Powell could further weigh on the US Dollar.
Final Thoughts on Forex Today
Forex today reflects an encouraging shift towards risk-on trading across global assets. The ceasefire has lifted market sentiment, pushing crude oil lower and equities higher. Currency market update shows the US Dollar weakening while Kiwi and Euro gain ground. This daily forex wrap suggests traders are regaining confidence amid reduced geopolitical risk. A weaker USD and stronger equities signal improved global financial conditions. Keep watching for Canadian CPI and Powell’s remarks to further shape FX market insights. Central bank commentary and inflation data will drive the next phase of market sentiment. In conclusion, the FX market is entering a phase of opportunity driven by peace hopes and solid fundamentals. Volatility remains, but direction is favouring bulls in the current macro climate. Stay alert to news events and data to capitalise on trading setups across global currency pairs.
