- The EUR/USD pair may continue to rise as the US dollar appears poised for a recovery amidst increased demand for safe havens.
- The chairman of the U.S. Senate Intelligence Committee mentioned that President Trump will give Iran one last opportunity to resolve its nuclear program.
- ECB President Lagarde indicated that the era of interest rate cuts is nearing its end.
The EUR/USD pair is on its third consecutive day of gains, trading around 1.1520 during the Asian session on Friday. It seems the pair is benefiting from the US dollar’s retreat, potentially due to a technical correction. The dollar may bounce back as investors seek safe havens, particularly with growing concerns regarding the US’s role in potential conflicts involving Israel and Iran.
A senior official from the US intelligence agency, as reported by the New York Times, stated that while Iran has amassed a significant amount of enriched uranium necessary for bomb-making, it has not yet resolved whether it intends to develop nuclear weapons.
In the meantime, the chairman of the U.S. Senate Intelligence Committee relayed that President Trump is prepared to extend an ultimatum to Iran, allowing them one last chance to finalize a deal concerning their nuclear endeavors. Some speculate Trump could delay a decision on military action for as much as two weeks.
The forthcoming Federal Reserve monetary policy report, set to be delivered to Congress on Friday, might capture traders’ attention since it includes insights on future monetary policy direction and economic outlook.
The EUR/USD gains may also be amplified by the supportive tone from the European Central Bank. Lagarde remarked that the central bank is in a favorable position to navigate overall uncertainties, emphasizing that interest rate cuts are coming to a close.
