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EUR/USD edges up above 1.1400 on rising bets for ECB hikes
EUR/USD was around 1.1430 as a softer US dollar helped, while traders looked for additional ECB tightening amid sticky core inflation and Iran-related energy concerns.
FXStreet said the EUR/USD pair posted modest gains in early Asian trading on Friday, moving to around 1.1430 and nudging above 1.1400 as the US dollar weakened.
The outlet attributed the rise in part to traders increasing expectations for more aggressive European Central Bank rate hikes. FXStreet noted that ECB guidance has been mixed, but recent accounts of a prior meeting reflected projections with inflation staying above target into next year.
FXStreet also linked the shift in rates expectations to uncertainty around the US-Iran conflict. The story said traders priced more tightening after signs an agreement to end the war was in jeopardy, which could keep energy-price fallout in focus.
FXStreet said markets will monitor developments in the US-Iran situation closely, adding that any signs of rising tensions could lift demand for safe-haven currencies and weigh on EUR/USD. It also cited a US official signaling continued commitment to a memorandum of understanding with Iran despite Trump saying the framework deal was “over.”
Latest closeEUR/USD 1.144 ▲0.3%