EUR/USD fell toward 1.145, its lowest level since late July. The euro is also facing its own inflation challenge, with ECB Chief Economist Philip Lane warning that the latest energy shock could keep inflation elevated until around mid-2027.

Oil continues to provide some relief. Brent slipped below $99, extending its decline as US-Iran diplomacy showed signs of progress. Iran has indicated it could reopen the Strait of Hormuz within seven days if US military pressure and restrictions on Iranian ports are eased. Saudi Arabia has also restarted its East-West pipeline, improving alternative export capacity outside Hormuz.

Lower oil prices are reducing immediate inflation concerns, although they have not yet changed the Fed’s tighter policy outlook. Gold has therefore slipped below $4,350 as higher rate expectations offset safe-haven demand.

USD/JPY remains elevated near 157.6 despite the BoJ’s recent hike, keeping Japanese intervention risk in focus. Meanwhile, technology shares remain resilient, supported by AI-related optimism, while Bitcoin has recovered toward $87,000.

Attention now shifts to further US-Iran negotiations and the Trump-Xi meeting, with trade, AI and strategic supply chains expected to remain key market themes.