US Dollar Appreciates Amid Middle East Escalation. Forecast as of 21.07.2026

The renewed conflict in the Middle East initially failed to trigger a meaningful rally in the US dollar, as investors doubted that Brent crude would climb back to $120 per barrel. That assumption is now being put to the test. Let's examine the situation and develop a trading plan for the EUR/USD pair.Major Takeaways The dollar is strengthening as geopolitical tensions escalate. Banks are divided on the future of Fed interest rates. The euro may find support from the ECB meeting. Range-tradi