The EUR/USD pair is hovering just below 1.1785 in the early hours of Tuesday in Asia. As traders process the ongoing conflicts in the Middle East, attention is turning to the imminent end of a 14-day ceasefire. Later today, Germany and the euro area’s ZEW survey results are anticipated, alongside the release of the March retail sales figures from the U.S.
President Donald Trump has made some confusing statements regarding the U.S. involvement in Iran, suggesting there’s no hurry to resolve the conflict. He also mentioned some hope for new talks with Tehran in Pakistan, particularly as the ceasefire is set to expire tomorrow.
On the other hand, Iranian Parliament Speaker Mohammad Berger Ghalibaf has stated that Iran won’t hold talks with the U.S. while under any kind of threat, as reported by the Guardian. Additionally, Iranian Foreign Minister Abbas Araghchi pointed out that “ongoing ceasefire violations” by the U.S. are a significant hurdle to diplomatic progress.
The uncertainty surrounding these negotiations could bolster the demand for safe-haven currencies, like the U.S. dollar, potentially creating some challenges for other major currency pairs.
As for the European Central Bank (ECB), officials seem inclined to keep interest rates steady at their upcoming April meeting. While this meeting is expected to maintain the status quo, analysts from Barclays are predicting that attention may shift toward a possible 25 basis point rate hike in June and September due to rising energy prices fueling inflation concerns.
