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EUR/USD extends gains as diplomatic progress eases dollar demand
High-profile geopolitical events over the past
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High-profile geopolitical events over the past weekend did not bolster the dollar, despite the ambiguous situation. On the contrary, traders' initial reaction was negative for the US currency, and buyers of EUR/USD again tested the 1.14 figure. Looking at the last two days, two interrelated storylines are key to assessing geopolitical risk in the FX market. First, the US-Iran negotiation track amid spikes in Middle East escalation. Second, the Israel-Lebanon negotiation process, which is complicated by Hezbollah's hardline stance. The main development
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Irina Manzenko,
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Irina Manzenko
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