Euro futures climbed back above 1.18 on Tuesday, marking a return to levels not seen since late February. This 1% rally over the last session and a half comes as market sentiment shifts toward diplomatic resolutions in the Middle East. Ongoing peace talks involving the U.S. and Iran have weakened the dollar, providing a significant tailwind for the Euro. Technical indicators show a shift in market structure as well. The CVOL index indicates that the steady decline in volatility seen since March has begun to flatten as the Euro tests recent highs. Additionally, speculative positioning has taken a surprising turn, with traders flipping net short the Euro for the first time since October 2024.