Euro higher amid US-Iran peace deal hopes

The EURUSD pair gathers strength around 1.1730 during the early European trading hours on Wednesday. The euro edged higher against the US dollar amid hopes for a US-Iran peace deal. Traders will also keep an eye on the release of the US ADP April Employment Change report later on Wednesday. Donald Trump said on Tuesday that “great progress has been made toward a complete and final agreement with representatives of Iran.” The US president further stated that he agreed to pause “Project Freedom,” the administration’s initiative to move commercial ships through the Strait of Hormuz. Earlier Tuesday, Iran introduced a new mechanism governing ship transits through the Strait of Hormuz amid the standoff with Washington over the strategic waterway. Traders will closely monitor the developments surrounding the US-Iran ceasefire. Any signs of de-escalation between the two countries could lift the riskier assets, such as the shared currency, in the near term. Markets are increasingly pricing in the European Central Bank rate hike as early as June, with officials hinting at the need to combat sticky inflation. Bundesbank President Joachim Nagel said on Monday that the ECB may need to raise interest rates in June if the inflation outlook does not improve significantly in the coming weeks. Meanwhile, the US Federal Reserve’s stance remains firm, with no immediate sign of rate cuts. (Source: OANDA) The post Euro higher amid US-Iran peace deal hopes appeared first on Financial Mirror.