ING: US-Iran peace agreement expectations will broaden euro gains
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Golden Ten Data reported on May 7 that Francesco Pesole of ING stated that if the US and Iran reach a peace agreement in the coming days, the EUR/USD pair could further extend its gains, even if the peace agreement leads markets to further scale back expectations for European Central Bank rate hikes. "Even if the short-term interest rate spread moves back in favor of the US dollar, the stock market will remain the primary driver of the euro's trend." After media reports indicated that the US and Iran are likely to reach a peace agreement and the Hormuz Strait may reopen, the EUR/USD rose 0.2% to 1.1771.
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