US-Iran Ceasefire Extension Boosts Global Market Sentiment: Forex Today Analysis

A 60-day US‑Iran ceasefire extension (announced Oct 26, 2025) has lifted global risk sentiment, prompting a shift away from safe-haven assets and driving notable moves in FX and equity markets. The US dollar weakened (DXY down ~0.4%), while EUR/USD climbed to 1.0850 and other risk-linked currencies such as GBP and AUD strengthened. Commodity-linked FX and oil remain sensitive to remaining supply risks, with crude around $75/bbl. Analysts see reduced tail risks but warn against complacency; several banks project further dollar weakness (Citigroup targeting EUR/USD 1.10) and flag oil spikes as a potential brake on the risk-on trade. Overall, the development supports risk-on FX strategies but underscores the need for active risk management given lingering geopolitical uncertainty and central‑bank rate dynamics.