CANBERA (dpa-AFX) - The euro strengthened against other major currencies in the European session on Wednesday, as European stock markets traded higher on improved prospects of a U.S.-Iran deal.
Hours after the U.S. struck Iranian naval facilities, U.S. Secretary of State Marco Rubio said a potential deal to end the Middle East conflict could 'take a few days' amid unresolved issues surrounding Tehran's frozen assets and unrestricted passage through Hormuz.
Iran condemned the self-defense strikes conducted by U.S. forces and said it would leave no act of aggression unanswered.
Iran's Islamic Revolutionary Guard Corps (IRGS) said that it targeted an F-35 fighter jet and several drones after identifying 'hostile aircraft' entering Iranian airspace.
It is feared that further military escalation could prompt Iran to retaliate against neighboring states.
In a written statement carried by state television, Iran's Supreme Leader Mojtaba Khamenei said regional countries would no longer be shields for U.S. bases.
As the Middle East conflict drags on, ECB policymaker and Bank of France Governor Villeroy de Galhau said in an interview to the broadcaster CNBC on Tuesday that the European Central Bank 'will do what is necessary' to bring inflation back to the 2 percent target.
The European Central Bank's next meeting is expected to result in a rate hike, as the markets are predicting.
In the European trading today, the euro rose to nearly a 1-month high of 185.71 against the yen and a 5-day high of 0.9155 against the Swiss franc, from early lows of 185.28 and 0.9136, respectively. If the euro extends its uptrend, it is likely to find resistance around 188.00 against the yen and 0.93 against the franc.
Against the U.S. dollar and the pound, the euro advanced to 2-day highs of 1.1650 and 0.8663 from early lows of 1.1633 and 0.8648, respectively. The euro may test resistance around 1.18 against the greenback and 0.87 against the pound.
Against the Australia and the Canadian dollars, the euro climbed to a 6-day high of 1.6319 and more than a 2-week high of 1.6104 from early lows of 1.6212 and 1.6066, respectively. The next possible upside target for the euro are seen around 1.66 against the aussie and 1.63 against the loonie.
Looking ahead, U.S. MBA mortgage approvals data, U.S. ADP employment data, U.S. Richmond Fed manufacturing index for May and U.S. Dallas Fed services index for May are slated for release in the New York session.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
