EUR/USD shows a decline, approaching 1.1615 during the early Asian session on Monday. Trump cautioned Iran that the “clock is ticking” as discussions aimed at concluding the conflict have reached an impasse. Analysts anticipate a quarter-point increase from the ECB in June. The EUR/USD pair is currently positioned in negative territory, trading around 1.1615 in the early Asian session on Monday. The Euro continues its downward trend as the ongoing US-Iran conflict exerts pressure on riskier assets.
Market participants are closely monitoring the upcoming preliminary readings of the Purchasing Managers’ Index data from both the Eurozone and the US, scheduled for release on Thursday. On Sunday, Iranian media indicated that the US did not provide any substantial concessions in its reply to Tehran’s recent proposals aimed at resolving the conflict. Source reported that Washington has established five primary conditions for a peace agreement, which include the transfer of uranium associated with Iran’s nuclear program to the US, no reparations from the US to Tehran, and the unfreezing of less than 25% of Iran’s frozen assets.
Donald Trump, the President of the United States, issued a warning to Iran on Sunday, pushing the country to “get moving” or face fresh consequences. It is possible that the current tensions between the United States and Iran will continue to bolster a safe-haven currency such as the United States Dollar, which might potentially create difficulties for the major pair.
The European Central Bank policymakers have indicated a potential interest rate increase to address persistent inflation expectations. This could subsequently assist in mitigating the losses of the shared currency. A significant portion of economists participating in the poll, approximately 85%, projected that the ECB would increase its deposit rate by 25 basis points to 2.25% in June, a shift from just over half who anticipated this prior to the April meeting.