Euro Rebounds from Six-Week Low on US-Iran Deal Hopes

EURUSD +0.35% EURUSD.SIM EURUSDTDTM EURUSDTMSP The euro strengthened to $1.163, recovering from a six-week low, as investors cheered progress in US-Iran negotiations that pushed Brent crude below the $100-per-barrel mark. President Donald Trump said a memorandum of understanding between the two nations had been "largely negotiated" and would reopen the Strait of Hormuz. US Secretary of State Marco Rubio described the potential deal as "pretty solid," suggesting it could lead to "very real, significant time-limited negotiations on nuclear matters." Last week, PMI data revealed the Eurozone economy contracted in May at its fastest pace since late 2023, driven by a war-fueled surge in living costs, with S&P Global warning the figures point to inflation approaching 4%. Money markets are currently pricing in two ECB rate hikes before year-end.