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ForexMediumUpdated×2•Originally published 12 April 2026•Updated 13 April 2026•

1 min read

EUR/USD Rebounds Amid Potential US-Iran Breakthrough and Political Shifts in Hungary

Two central bankers, Christine Lagarde and Thomas Jordan, with EU and Swiss flags, Euro and Swiss Franc symbols, and coins.

Key Facts

1The failure of diplomatic talks between the US and Iran has led to increased risk aversion in the markets.

about 2 months ago

Version History

2 additional sources confirmed this story

Version 2about 2 months ago

What changed: The narrative shifted from failed talks to a potential breakthrough involving sanctions relief, alongside political changes in Hungary and a holding ceasefire, driving a EUR/USD rebound.

Version 1about 2 months ago

The EUR/USD pair has staged a significant recovery, returning to levels seen at the start of the conflict following signs of a potential diplomatic breakthrough. Market sentiment improved after reports suggested a possible deal involving the exchange of uranium for sanctions relief and the release of funds. Additionally, optimism is growing regarding the steady flow of oil through the Strait of Hormuz, regardless of potential toll arrangements. On the European front, the Euro found support from political shifts in Hungary following the election defeat of Viktor Orban, which reduced regional political uncertainty. Positive comments from Donald Trump and a holding ceasefire have further bolstered the risk-on mood, reversing previous downward pressure on the single currency. Investors are now closely monitoring these fast-moving developments as the market narrative shifts from risk aversion to cautious optimism.