The EUR/USD pair sees increased buying interest near 1.1720 during the Asian trading session on Wednesday, supported by a more favorable risk sentiment. US President Donald Trump announced that Project Freedom and the movement of ships through the Strait of Hormuz have been temporarily halted. Market participants prepare for the upcoming US ADP Employment Change report on Wednesday, seeking new insights to guide their strategies.
The Guardian reported on Tuesday that Trump stated Iran and the US have come to a mutual understanding that although the US blockade “will remain in full force and effect,” Project Freedom will be put on hold. Trump stated that this measure was intended to determine whether a consensus between the two nations could be reached and formalized. On Tuesday, US Secretary of Defense Pete Hegseth confirmed that the ceasefire between the US and Iran remains effective, even in light of recent attacks in the Strait of Hormuz.
EUR/USD shows resilience as it approaches 1.1720 during the Asian session on Wednesday. Trump indicated that Project Freedom and the transit of vessels through the Strait of Hormuz are currently on hold. The EU has called on the US to reinstate the trade terms for Turnberry as the first anniversary of the deal approaches. Market participants will pay close attention to the unfolding events related to the US-Iran ceasefire. Any signs of easing tensions in the Middle East could support riskier assets like the Euro against the US Dollar.
The European Commission announced on Tuesday that the EU’s trade chief has called on the US to promptly reinstate the tariffs established in last year’s EU-US trade agreement. The Commission noted that having the primary terms of that deal established before its one-year anniversary at the end of July would be advantageous. On Tuesday, Maros Sefcovic met with US Trade Representative Jamieson Greer in Paris. A significant concern for the EU is Trump’s potential threat to increase tariffs on cars and trucks from the EU to 25%, according to reports.