EUR/USD maintains a favourable position near 1.1515 during the early hours of Thursday’s Asian session. Trump and Pezeshkian signed the US-Iran MoU to end the war. The Federal Reserve opted to maintain its benchmark interest rate during its June policy meeting, aligning with market expectations. The EUR/USD pair recovers some lost ground near 1.1515 during the early Asian trading hours on Thursday. The Euro strengthens against the US Dollar on improved risk sentiment following the signing of the US-Iran MoU by US President Donald Trump to end the war. Traders prepare for the release of the US Initial Jobless Claims report, scheduled for later today.
The source reported that the White House announced that Trump and Iran’s Masoud Pezeshkian signed the memorandum of understanding aimed at concluding the US-Israel conflict regarding Iran. The document has been signed electronically by the two leaders following the electronic signatures of Iranian parliamentary speaker Mohammad Bagher Ghalibaf and US Vice-President JD Vance on Sunday. Iran and the US are anticipated to officially sign a memorandum of understanding on Friday in Geneva, according to sources. Expectations surrounding a potential US-Iran peace agreement may enhance the appeal of riskier assets, including the shared currency, in the short term.
On Wednesday, the US Federal Reserve voted unanimously to maintain its benchmark federal funds rate within a range of 3.5% to 3.75% during its inaugural meeting under the leadership of Kevin Warsh. Federal Reserve officials indicated the possibility of increased interest rates as they evaluate the effects of the conflict in Iran on inflationary pressures. During the conference, new Chairman Kevin Warsh stated that “Price stability” would be the Fed’s guiding principle. Money markets have completely accounted for a rate increase by October. A hawkish rate hold from the US central bank could strengthen the Greenback and limit the potential gains for the major pair.