Euro falls to the lowest since July

The euro declined by roughly 30 pips on the session, falling to its lowest level since July 29 as market optimism regarding a diplomatic breakthrough between the United States and Iran rapidly faded following Donald Trump's address at the United Nations. Although earlier media reports suggested Iran might consider opening the Strait of Hormuz in exchange for the removal of US blockades, those claims were quickly denied by Iranian media, while Trump signaled that any comprehensive agreement is unlikely before the upcoming midterm elections. The renewed geopolitical tensions prompted a swift market reassessment, pushing WTI crude oil prices sharply higher from an intraday trough of $89.16 to $91.68 per barrel. Rising energy prices and safe-haven flows simultaneously bolstered US dollar demand and supported higher US Treasury yields, placing broad downward pressure on European currencies. With the euro breaking key intermediate levels, technical analysts warn of limited support until the critical July low at 1.1350.