EUR/USD Weakens Amid US-Iran Ceasefire Uncertainty
The EUR/USD weakened and traded around 1.1750 in early Asian trading on Wednesday, as markets assessed US-Iran geopolitical risks and uncertainty surrounding the Strait of Hormuz blockade. This boosted demand for the US dollar as a safe-haven asset, pressuring the euro.
US President Donald Trump said he was extending the ceasefire with Iran indefinitely, despite reports that a new round of negotiations has failed to materialize. An aide to Iran's top negotiator described the move as an attempt to "buy time," while the Iranian military warned of the potential for a powerful attack on specific targets amid continued threats from Trump. The uncertainty surrounding the direction of the talks kept market sentiment on the defensive, supporting the dollar.
The focus next shifts to the data agenda, particularly the preliminary releases of the Eurozone and German HCOB PMIs on Thursday, which could potentially support the euro if stronger-than-expected results. From the US, the April S&P Global PMI is also scheduled for release on the same day, which could influence the dollar's movement and the short-term direction of EUR/USD. (Asd)
Source: Newsmaker.id