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Euro gains strongly against US Dollar on revival of risk-on sentiment

  • The Euro jumps to near 1.1410 against the US Dollar as safe-haven demand diminishes.
  • The exchange of attacks in the Middle East pauses as the list containing targets in Iran is exhausted.
  • Investors await the Fed’s policy announcement and the flash Eurozone HICP data for July.

The Euro (EUR) trades 0.36% higher to near 1.1410 against the US Dollar (USD) during the European trading session on Monday. The major currency pair trades firmly as the revival of risk-on market sentiment has diminished the safe-haven appeal of the US Dollar.

In the European trade, S&P500 futures trade almost 1% higher to near 7,485, reflecting a risk-on market mood. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.25% lower to near 101.20.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD-0.40%-0.25%-0.20%0.01%-0.41%-0.30%-0.48%
EUR0.40%0.11%0.19%0.39%-0.02%0.11%-0.10%
GBP0.25%-0.11%0.07%0.28%-0.14%-0.04%-0.21%
JPY0.20%-0.19%-0.07%0.17%-0.23%-0.13%-0.29%
CAD-0.01%-0.39%-0.28%-0.17%-0.40%-0.30%-0.48%
AUD0.41%0.02%0.14%0.23%0.40%0.13%-0.09%
NZD0.30%-0.11%0.04%0.13%0.30%-0.13%-0.21%
CHF0.48%0.10%0.21%0.29%0.48%0.09%0.21%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

The risk-appetite of financial markets has improved amidst the pause in military aggression between the United States (US) and Iran. Over the weekend, a spokesperson from the US military stated that the attacks on Iran have paused as the provided target list has been exhausted.

US ambassador to the United Nations (UN) Mike Waltz said that while forces remained locked and loaded, President Donald Trump wants to give negotiations a little bit of room. The Guardian reported.

On the domestic front, investors await the Federal Reserve’s (Fed) monetary policy announcement on Wednesday. The Fed is expected to leave interest rates unchanged in the range of 3.50%-3.75%. The impact of Fed Chair Kevin Warsh’s press conference is expected to be insignificant, as he clarified in the previous press conference that “so-called forward guidance is not well-suited in the current policy juncture”.

In the Eurozone, investors await the preliminary Harmonized Index of Consumer Prices (HICP) data for July, which will be released on Friday. The inflation data will have a significant impact on the European Central Bank’s (ECB) interest rate expectations, given that the majority of policymakers have warned of upside inflation risks.

On Thursday, ECB President Christine Lagarde said in the press conference, “Risks to inflation tilted to upside." Lagarde added, “Energy shock likely to keep inflation well above target into first half of 2027."

Economic Indicator

Fed Interest Rate Decision

The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns. If rates are left unchanged, attention turns to the tone of the Federal Open Market Committee (FOMC) statement, and whether it is hawkish (expectant of higher future interest rates), or dovish (expectant of lower future rates).

Read more.

Next release: Wed Jul 29, 2026 18:00

Frequency: Irregular

Consensus: 3.75%

Previous: 3.75%

Source: Federal Reserve

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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