The US dollar is declining slightly in the foreign exchange market.
Markets are awaiting new clues about the path of European interest rates.
The euro rose in the European market on Thursday against a basket of global currencies, beginning to recover after two days of losses against the US dollar, benefiting from the slowdown in the US currency's levels, amid growing hopes of a halt to the Iranian war.
Following more aggressive comments from the European Central Bank president, the likelihood of European interest rates being raised at least once this year has increased. In order to reassess those prospects, markets are awaiting further data on developments in the Eurozone economy.
Price overview
Euro exchange rate today: The euro rose against the dollar by 0.1% to ($1.1572), from today’s opening price of ($1.1558), and recorded a low of ($1.1554).
The euro ended Wednesday's trading down 0.4% against the dollar, its second consecutive daily loss, after Iran denied entering into negotiations with the United States to end the war in the Middle East region.
The US dollar index fell 0.1% on Thursday, its first decline in the last three sessions, reflecting a slowdown in the US currency's performance against a basket of global currencies.
This comes at a time when traders are assessing the prospects for a ceasefire in the Middle East, amid intensive diplomatic efforts to contain the escalation, and cautious anticipation of any signs that might pave the way for a truce or ceasefire agreement.
Developments in the Iranian war
US President Donald Trump said Iran is striving to reach an agreement to end nearly four weeks of fighting, contradicting a statement by the Iranian foreign minister who said his country is reviewing a US proposal but does not intend to hold talks to end the conflict.
Iranian Foreign Minister Abbas Araqchi said that although there was no dialogue or negotiations with the United States, various messages had been exchanged through intermediaries.
Araqchi added in an interview with state television on Wednesday: “Conveying messages through our friendly countries, and our response by clarifying our positions or issuing the necessary warnings, is not called negotiation or dialogue.”
Trump said later on Wednesday during an event in Washington that Iranian leaders were negotiating, by the way, and were very keen to make a deal, but were afraid to say so.
The New York Times reported that the United States sent Iran a plan containing 15 key points to end the war in the Middle East.
Sources said a month-long ceasefire will be announced according to a mechanism being worked on by Wittkov and Kushner. Negotiations on the fifteen points will take place during the ceasefire period.
European interest rate
European Central Bank President Lagarde said on Wednesday that the bank is prepared to raise interest rates even if the expected rise in inflation is short-term.
Following those comments, the money market's pricing in the likelihood of the European Central Bank raising European interest rates by about 25 basis points next April rose from 25% to 35%.
Sources told Reuters that the European Central Bank is likely to begin discussing raising interest rates next month.
In order to reprice the above probabilities, investors are awaiting further economic data from the Eurozone on inflation, unemployment and wage levels.
