Credit Agricole CIB Research nudge up its Q3 EUR/USD target from 1.12 to 1.14.

"Hopes for a sustained cessation of hostilities in the Middle East and a reopening of the Strait of Hormuz have sunk global energy prices and helped risk sentiment recover. In contrast, EUR/USD has been unable to hold on to its initial gains in the wake of the announcement of the US- Iran ‘deal’. The pair could remain a sell-on-rallies at current levels, in part because of the lingering geopolitical risks ahead," CACIB notes.

"It remains uncertain whether the US and Iran would be able to reach a deal at the end of their self-imposed 60-day negotiation period. To the extent that we do see some normalisation of the flow of energy through the Strait of Hormuz, however, this should cut the risk of renewed oil price spikes and thus the risk of significant EUR/USD downside. We thus nudge up our September forecast to 1.14 from 1.12 previously," CACIB adds.