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US-Iran Peace Deal Sparks Stock Rally, Easing Inflation Fears
A US-Iran peace deal lifted equity markets and eased inflation concerns in Wednesday's US session, with risk appetite improving broadly. Oil prices are implied to have softened on reduced geopolitical tension, relieving pressure on inflation expectations.
USD/CAD and USD/JPY are the key pairs to watch — a softer oil outlook weighs on the Canadian dollar while safe-haven demand for the yen fades. Risk-on flows could also lift AUD/USD and EUR/USD as the dollar softens on reduced inflation fears.
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