EUR/USD experiences a decline, settling near 1.1785 during the early hours of Tuesday’s Asian session. Iran’s chief negotiator asserts that Tehran will not engage in discussions while under duress. The expectation is that the ECB will maintain the current rates in April. The EUR/USD pair is experiencing slight declines, hovering around 1.1785 in the early hours of the Asian session on Tuesday. Market participants are analyzing the current Middle East tensions as the 14-day ceasefire approaches its expiration. The US March Retail Sales report is set to be released.
US President Donald Trump has conveyed a range of perspectives regarding the future of the conflict with Iran, indicating that he is not in a hurry to conclude the hostilities. Trump conveyed a positive outlook regarding the prospect of renewed negotiations with Tehran, anticipated to occur in Pakistan, as the 14-day ceasefire approaches its expiration on Wednesday.
On Tuesday, Iranian Parliament speaker Mohammad Bagher Ghalibaf stated that Iran will not engage in negotiations with the United States while facing threats, according to source. In the meantime, Iranian Foreign Minister Abbas Araghchi stated that “continued violations of the ceasefire” by the US represent a significant barrier to advancing the diplomatic process. Uncertainty surrounding US-Iran ceasefire talks may strengthen a safe-haven currency like the US Dollar and pose challenges for the major pair.
The European Central Bank officials appear to be inclined to maintain the current interest rates during the April policy meeting. In the upcoming April policy meeting, a hold is anticipated. However, analysts at Barclays foresee a shift in focus towards possible 25 basis point hikes in June and September, aimed at addressing the surge in energy-driven inflation.