EUR/USD is experiencing slight upward movement, hovering around 1.1540 during the early Asian session on Friday. Galhau from the ECB indicated that a rate hike is “highly likely,” although the timing remains uncertain. Geopolitical tensions in the Middle East may provide support for the US Dollar, recognized as a safe-haven currency. The EUR/USD pair experiences slight increases, hovering around 1.1540 in the early Asian session on Friday. Trading volumes are expected to remain low as a result of the Good Friday holiday. The US Nonfarm Payrolls report for March is set to be the focal point later on Friday.
Assertive statements from the European Central Bank may bolster the value of the shared currency in the short term. ECB policymaker Francois Villeroy de Galhau indicated on Thursday that an increase in the central bank’s interest rates is highly probable in the near future, though it remains premature to determine the exact timing of such a move. Market participants are currently assessing an approximately 81.0% likelihood of a 25 basis point increase at the forthcoming April 30 meeting, as indicated.
The ongoing conflict in the Middle East has now progressed into its second month. This development may elevate crude oil prices and strengthen the US Dollar as a preferred safe-haven currency. On Thursday, US President Donald Trump highlighted the demolition of a bridge in Tehran, Iran. He cautioned that there was “much more to follow” and encouraged Tehran to “make a deal before it is too late.”
In the meantime, Iran’s foreign minister, Abbas Araghchi, remarked that the recent strikes by Washington on civilian infrastructure will not compel the nation to retreat, further stating that such actions “convey the defeat and moral collapse of an enemy in disarray.”