Markets and EUR/USD are reacting positively to rumors of an end to the war.

The EUR/USD pair rose another 70 basis points on Wednesday, gaining about 160 points over the past two days.

Inflation concerns and expectations of a Fed rate hike remain in place, limiting U.S. dollar losses and constraining spot prices. Delayed rate hike forecasts by the Reserve Bank of New Zealand, due to a prolonged energy shock, are additionally weighing on the New Zealand dollar.

On Wednesday, EUR/USD rose slightly amid easing tensions between the United States and Iran, boosting risk appetite. Stronger U.S. data—including the ISM PMI, ADP employment figures, and retail sales—failed to strengthen the dollar.

The pound is strengthening as hopes for a quicker U.S. exit from Iran improve market sentiment. Strong U.S. data and rising prices continue to sustain inflation risks. A slowdown in the UK manufacturing sector limits gains despite the overall weakness of the dollar.

Bullish traders are once again trying to rebound from the bottom

The bullish trend still remains relevant

Hopes for de-escalation of tensions in the Middle East are putting pressure on the U.S. dollar and supporting the metal. At the same time, inflation concerns and expectations of a Federal Reserve rate hike remain in place, limiting the dollar's losses.

USD/JPY: Tips for beginner traders on April 1st (U.S. session)

GBP/USD: Tips for beginner traders on April 1st (U.S. session)