The euro is experiencing a drop, hovering around 1.1750 in the early Asian session on Wednesday. Trump declared that the ceasefire with Iran will be extended, depending on the progress of negotiations between the two countries. Iran’s military has issued a warning about a major offensive directed at certain targets, referencing ongoing threats from Trump. The currency pair is currently positioned in negative territory, hovering around 1.1750 in the early Asian session on Wednesday.
The current tensions between the United States and Iran, along with the ambiguity regarding the Strait of Hormuz blockade, exert pressure on the Euro in comparison to the US Dollar. US President Donald Trump announced late Tuesday the indefinite extension of a ceasefire with Iran, just one day before it was set to expire, even though plans for a new round of negotiations between the two nations had fallen through.
Meanwhile, an aide to Iran’s chief negotiator has described Trump’s actions as a “strategy to gain more time” after the US President’s extension of the temporary ceasefire. Iran’s military has issued a warning about a major attack on certain targets, referencing continuing threats from Trump. The ongoing uncertainty surrounding the US-Iran peace negotiations could bolster a safe-haven currency such as the Greenback, which may create difficulties for the major pair in the near term.
Market participants will keep an eye on the preliminary readings of the HCOB Purchasing Managers’ Index from the Eurozone and Germany, set to be released on Thursday. If the reports show results that surpass expectations, this could provide some backing for the shared currency. On the US docket, the PMI data from S&P Global for April is scheduled for release on the same day.