EUR/USD and Major Pairs Rebound as Trump De-Escalates Iran Tensions

Major forex pairs are extending pullbacks from recent lows as markets respond to a shift in US-Iran rhetoric, with President Trump initiating de-escalation signals. The European session opened with limited scheduled data, featuring only the ECB accounts release, which is typically not a market mover given its delayed nature. Price action across risk-sensitive pairs suggests cautious optimism, with the dollar giving back some of its safe-haven gains from the prior session. EUR/USD is recovering modestly as risk appetite tentatively returns, while commodity currencies are also firming alongside elevated oil prices. Traders should remain alert to the possibility of rapid sentiment reversals, as the geopolitical situation remains fluid with fresh explosions still being reported in Iran. The lack of significant European economic data means that US-Iran headlines will continue to serve as the primary driver for intraday moves. Key levels to watch include yesterday's lows as potential support and pre-escalation levels as resistance targets for major pairs.