- EUR/USD recoups its early losses and rebounds to near 1.1625 amid easing US-Iran tensions.
- Iran expresses willingness to give up its nuclear program if the US offers a rewarding offer.
- Dovish Fed bets for the July meeting have diminished after upbeat US data.
The EUR/USD pair claws back a majority of its early losses and rises to near 1.1625 during the European trading session on Thursday, but is still marginally down. The major currency pair bounces back as demand for safe-haven assets has diminished, following comments from Iran Deputy Foreign Minister Saeed Khatibzadeh that it is willing to stop the war with Israel and the United States (US), giving up pursuing its nuclear plans, if Washington offers a rewarding offer.
“Iran is ready to abandon its nuclear program on the condition that the United States presents a rewarding alternative offer,” Khatibzadeh said, Sky News Arabia reported.
During the European trade, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% higher to near 99.00, but has surrendered a majority gains.
Meanwhile, receding dovish Federal Reserve (Fed) prospects due to upbeat US data are expected to continue supporting the US Dollar. The data showed on Wednesday that the ADP reported 63K fresh jobs were created in the private sector in February, significantly higher than 50K estimates and the prior reading of 11K. The Services PMI arrived higher at 56.1, while it was expected to come in lower at 53.5 from 53.8 in January.
According to the CME FedWatch tool, the odds of the Fed reducing interest rates in the July meeting has increased to 50.2% from 37.9% seen on Tuesday.
In the Eurozone, Retail Sales drop 0.1% month-on-month (MoM) in January, while it was expected to grow 0.3%. In December, the consumer spending measure rose by 0.2%, revised positive from -0.5%.
