Three ECB policymakers warned Thursday that prolonged Iran-U.S. conflict risks pushing euro zone inflation above its 2% target and weakening growth, citing lessons from Russia's 2022 Ukraine invasion that initially caught the central bank off-guard.
EUR/USD edges higher above 1.1700 ahead of Fed and ECB decisions.
EUR/USD holds gains above 1.1700 amid US-Iran ceasefire extension.
ECB may not hike interest rates due to economic uncertainty and potential recession.
EUR/USD traded above 1.1725 Tuesday as markets awaited Fed and ECB rate decisions amid US-Iran tensions over the Strait of Hormuz closure, with geopolitical uncertainty potentially supporting the dollar and limiting euro gains.
EUR/GBP steadies near 0.8660 as traders await BoE and ECB rate decisions Thursday, with both central banks expected to hold rates amid Middle East uncertainty and concerns about energy price impacts on UK economy growth.
The dollar recovered to a one-week high as US-Iran tensions over the Strait of Hormuz boosted safe-haven demand, while the euro weakened on Eurozone consumer confidence declining to a 3.25-year low and Germany cutting its 2026 GDP forecast.
ECB may not hike interest rates due to economic uncertainty and potential recession.
EUR/JPY slips below 186.50 after the Bank of Japan kept its short-term rate unchanged at 0.75%.
EUR/USD strengthened above 1.1710 as Trump extended a US-Iran ceasefire, reducing conflict fears and boosting risk appetite, while the ECB signals unchanged April rates with potential June-September hikes ahead.
ECB's Kazaks says the bank is not rushing to change monetary policy, citing no urgency to raise interest rates yet.
ECB policymakers, including Philip Lane and François Villeroy de Galhau, downplayed April rate hike prospects, emphasizing data dependency over timing as markets scaled back hike bets to just twenty percent probability.