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ForexMediumUpdated×9•Originally published 14 April 2026•Updated 16 April 2026•

1 min read

EUR/USD Surges Past 1.18 as Dollar Weakens on US-Iran Peace Hopes

Donald Trump against maps of the US and Iran, with oil barrels, pipelines, derricks, and upward financial charts amidst flames.

Key Facts

1USD/JPY pulled back after nearly reaching the 160.00 level as the US dollar weakened due to improved risk sentiment.

about 2 months ago

Version History

1 additional source confirmed this story

Version 9about 2 months ago

What changed: Updated to include the US dollar's slight recovery attempt from oversold conditions and its testing of key support levels against the JPY and CAD.

Version 8about 2 months ago

What changed: Updated to include White House confirmation of productive talks and the subsequent expansion of risk-on sentiment to Gold and AUD/JPY.

Version 7about 2 months ago

What changed: Expanded coverage to include the USD/JPY pair rising to 159.00 as markets react to ongoing uncertainty regarding the Iranian conflict.

Version 6about 2 months ago

What changed: The narrative shifted from Japanese intervention fears to a EUR/USD recovery driven by US-Iran peace optimism and increased Fed easing expectations.

Version 5about 2 months ago

What changed: The narrative shifted from geopolitical risk appetite to specific domestic fears of Japanese currency intervention and a weakening US Dollar, pushing the pair toward weekly lows.

Version 4about 2 months ago

Version 3about 2 months ago

Version 2about 2 months ago

Version 1about 2 months ago

What changed: Updated the story to include current trading ranges between 158.20 and 159.70, technical resistance at the 20-day SMA, and the flattening of momentum indicators.

The EUR/USD pair held gains above 1.18 as the dollar weakened following confirmation from White House press secretary Leavitt that talks with Iran are 'productive and ongoing.' However, the US dollar attempted a slight turnaround in early trading as it was considered oversold over the past few days, leading it to test key support levels against the JPY and CAD. This diplomatic optimism initially fueled a broader risk-on sentiment, lifting gold prices and pushing the AUD/JPY pair toward 113.50. Meanwhile, the USD/JPY pair hovered around 159.00 as investors recalibrated their expectations amid easing geopolitical tensions. ECB policymakers have maintained their hawkish stance, stressing the need for caution despite the improving backdrop. Market participants are now balancing diplomatic breakthroughs against technical indicators suggesting a minor recovery attempt for the greenback.