The EUR/USD pair surges to around 1.1670 during the early Asian session on Wednesday. The Euro (EUR) strengthens against the Greenback after US President Donald Trump agrees to a two-week ceasefire with Iran.
A White House official said that Trump said he’d agreed to a two-week ceasefire with Iran on Tuesday on the condition that Iran agree to reopen the critical Strait of Hormuz. Israel has also agreed to the ceasefire, per CNN. Trump’s announcement came after Pakistani Prime Minister Shehbaz Sharif’s proposed a ceasefire to allow for diplomatic negotiations between the US and Iran.
Traders will closely monitor the developments surrounding the US-Iran ceasefire. Signs of easing tension in the Middle East could underpin the riskier assets, such as the shared currency in the near term.
Minutes of the Federal Open Market Committee (FOMC) will take center stage later on Wednesday. The report could offer some insights into how officials view the recent energy shock caused by conflicts in the Middle East.
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