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Posted 11 hours ago
USD Stays Firm as Oil Drops, Hormuz Reopens After Peace Deal
The Strait of Hormuz has reopened following a US-Iran peace agreement, sending oil prices to multi-month lows and stripping out the geopolitical inflation premium that had supported energy markets. The US dollar remains broadly firm, underpinned by the Federal Reserve's hawkish stance under Chair Kevin Warsh.
USD pairs are the primary focus — EUR/USD and GBP/USD face continued downside pressure with higher-for-longer US rates. Oil-linked currencies like CAD and NOK may weaken on falling crude. Traders should watch for volatility as markets reprice both geopolitical risk and rate expectations simultaneously.
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