Middle East De-escalation Keeps Euro Afloat. Forecast as of 27.07.2026

The odds seemed stacked against the euro. The ECB did little to support the EUR/USD pair, while the conflict in the Middle East and fresh US tariffs boosted demand for the US dollar. But as tensions began to ease, the narrative quickly shifted. Let's examine the key drivers and develop a trading plan.Major Takeaways The de-escalation of the US-Iran conflict has saved the euro. White House tariffs lose their impact. The return of the TACO trade is weighing on the US dollar. Consider holding long