Forex Today: Oil Drops on Iran-Israel Ceasefire, USD Weakens Ahead of Powell

Forex Today – June 24, 2025: Risk Sentiment Lifts Markets as Oil Falls, USD Drops Ahead of Powell

Tredu Market Recap

Financial markets opened Tuesday with risk-on momentum after a ceasefire agreement was reached between Israel and Iran, reducing geopolitical uncertainty and safe-haven demand.

Key Market Themes:

• WTI Crude Oil prices decline as supply concerns fade; WTI trades around $65.50.
• The US Dollar Index (DXY) dips to ~98.00 amid easing tensions and growing expectations of a Federal Reserve rate cut.
• Fed Chair Jerome Powell is scheduled to testify before the US House Financial Services Committee later today, providing clarity on monetary policy direction.
• German IFO Business Climate data will offer further insight into the economic health of Europe’s largest economy.

With geopolitical fears ebbing and dovish Fed rhetoric gaining traction, traders are positioning for potentially lower yields and sustained risk appetite in the near term.

Stay Updated:

• US Dollar Index Drops on Ceasefire, Fed Expectations
• NZD/USD Surges as Risk-On Trade Resumes
• Powell’s Testimony: What to Watch For