EUR/USD climbs past 1.1550 after recent comments from Trump.

The EUR/USD pair saw an increase for the second consecutive day, trading around 1.1560 during Asian hours on Wednesday. This rise comes as the US dollar weakened, largely due to a dip in the appeal of safe-haven assets, linked to decreasing tensions in the Middle East.

On Tuesday, President Trump stated that the U.S. would be “exiting” the Iran conflict “soon,” suggesting a potential withdrawal within two to three weeks. These remarks reinforce earlier claims that American strategic objectives have mostly been met, generating optimism for a quicker resolution.

Additionally, Trump noted that a formal agreement with Iran is not necessary to cease hostilities. In response to inquiries about the need for a deal, Iran asserted, “there is no need for a deal,” indicating a preference for military outcomes over diplomatic efforts.

On the Iranian front, President Massoud Pezeshkian expressed intentions to de-escalate tensions if certain conditions are fulfilled. Conversely, Foreign Minister Abbas Aragushi maintained a more assertive position, insisting on a complete end to the war rather than just a temporary ceasefire. He highlighted the necessity for binding guarantees and reparations against future aggressions, noting that ambiguities linger regarding conflict resolution.

In March, the eurozone’s harmonized index of consumer prices (HICP) rose by 2.5% year-on-year, which was lower than the anticipated 2.7%. The core HICP, excluding more volatile elements like food and energy, increased by 2.3% year-on-year, just shy of prior expectations and the previous reading of 2.4%.

While these inflation figures were below forecasts, they still signify ongoing price pressures within the eurozone economy. Notably, the data suggests that the conflict in the Middle East is already exerting substantial inflationary pressure in the region, primarily through elevated energy costs.

European Central Bank (ECB) President Christine Lagarde, along with chief economist Philippe Lane, indicated that recent events might necessitate a more hawkish approach to monetary policy. However, they also made clear that the scale and timing of any policy actions will depend largely on the extent and duration of energy shocks driven by the geopolitical landscape.