EUR/USD remains stable around 1.1540 during the early Asian session on Tuesday. Trump has reiterated the potential for assaults on critical infrastructure such as bridges and power plants. The US ISM Services PMI fell to 54.0 in March, underperforming relative to expectations. The EUR/USD pair remains stable at approximately 1.1540 in the early Asian session on Tuesday. The primary currency pair stabilizes as market participants keep a close watch on US President Donald Trump’s deadline concerning the Strait of Hormuz.
Later on Tuesday, the US will release the Durable Goods Orders and ADP Employment reports. US President Donald Trump stated on Monday that the most recent proposal for a US ceasefire with Iran is “not good enough.” On Tuesday, he issued a warning regarding potential actions against Iran’s power plants and bridges should the strategic waterway remain closed, establishing a clear deadline of 8 pm. Market participants assess the intensifying conflict in Iran, focusing on the recent ultimatum from Trump regarding the reopening of the Strait of Hormuz.
Any indications of rising tensions may strengthen a safe-haven currency like the US Dollar and pose challenges for the major pair. Data released on Monday indicated that the Services PMI decreased to 54.0 in March, down from 56.1 in February. This reading fell short of the anticipated 55.0, indicating a potential decline in momentum within the sector.
A hawkish stance from the European Central Bank may bolster the value of the shared currency. Current market expectations indicate 2–3 interest rate hikes for 2026, driven by escalating energy-related inflation, marking a notable departure from earlier forecasts of stable rates.