The EUR/USD pair trades marginally higher to near 1.1640 during the European trading session on Wednesday.
The major currency pair edges up as the Euro (EUR) trades broadly firm, even as uncertainty regarding the United States (US)-Iran deal continues to persist
The US-Iran deal concerns have escalated as Tehran condemns so-called “defensive strikes” from the US Central Command. On Monday, the US Central Command launched strikes on Iran, which were described as “self-defense” and aimed at “protecting our troops from threats posed by Iranian forces”. Meanwhile, the US Dollar (USD) trades marginally lower during the European trade, with the US Dollar Index (DXY) trading 0.1% lower at around 99.05.
Going forward, investors will focus on the US-German inflation data, which will be released on Thursday and Friday, respectively. The US core PCE inflation – which is the Federal Reserve’s (Fed) preferred inflation gauge – is estimated to have grown at an annualized pace of 3.3%, faster than 3.2% in March, with monthly figures growing steadily by 0.3%. In Germany, preliminary Harmonized Index of Consumer Prices (HICP) data for May is expected to remain steady at 2.9% Year-on-Year (YoY).