**BREAKING: US Dollar Plunges on Reports of US-Iran Peace Deal**
The US Dollar fell sharply Thursday following reports that Washington and Tehran have reached an agreement potentially ending military conflict in the Middle East. The Greenback reversed earlier gains and came under immediate selling pressure as markets absorbed the geopolitical de-escalation news.
The development marks a significant shift in regional tensions that have supported safe-haven demand for the Dollar in recent sessions. Currency traders moved quickly to unwind defensive positions as risk appetite improved across global markets. The peace deal reports suggest reduced volatility in energy markets and broader Middle East stability, which typically diminishes demand for traditional safe-haven assets.
Forex professionals should monitor confirmation details and implementation timelines as the situation develops. German flash CPI data also remains on today’s economic calendar, which could influence EUR/USD volatility amid the Dollar’s broader weakness.
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FXnCO Insight
** Traders should prepare for continued Dollar weakness and consider rotating into risk-sensitive currencies if US-Iran peace deal details are officially confirmed by both governments.
Source: FXStreet