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EUR/GBP rises as hopes build for a Strait of Hormuz ceasefire

The move comes as traders react to reports Washington and Tehran agreed to a ceasefire to restore free navigation, with an announcement expected in the coming days.

Reported · Written up by our desk · Major Pairs

FXStreet reports EUR/GBP was trading around 0.8570 on Wednesday, edging higher as market hopes for a de escalation in the Gulf supported the euro against the British pound.

The pair broke above its 20 and 100 period moving averages, which were clustered near 0.8558 on the four hour chart, and it was testing the session high around 0.8574.

RIA Novosti reported that Washington and Tehran agreed to a ceasefire intended to restore free navigation through the Strait of Hormuz, a key shipping route that carried about a fifth of the world’s oil and LNG before the conflict, with an announcement expected in the coming days.

With German unemployment data due Friday, and the jobless rate expected to hold at 6.4% in July, traders may wait for confirmation on Hormuz before fully pricing the news, FXStreet added.

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