Euro Rises on Iran Ceasefire Hopes

2026-05-08 14:25 By Joana Ferreira 1 min. read

The euro extended gains above $1.175, reaching its strongest level since April 20, buoyed by optimism over a potential resolution to the Iran conflict.

US President Donald Trump confirmed that the ceasefire with Iran remains in effect, while Tehran stated it is still reviewing a US proposal to end the conflict.

US Secretary of State Marco Rubio added that Washington expects Iran’s response soon.

Meanwhile, Trump warned the EU that the US would impose "much higher" tariffs on EU goods unless the bloc eliminates its tariffs on US products by July 4.

Money markets are pricing in at least two rate hikes by the ECB this year, with a more than 75% probability of a first increase in June.

ECB President Christine Lagarde noted on Friday that the central bank is prepared to act swiftly if needed and that the euro area’s economic starting position ahead of the energy shock is more favorable than it was before Russia’s invasion of Ukraine.



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Euro Rises on Iran Ceasefire Hopes
The euro extended gains above $1.175, reaching its strongest level since April 20, buoyed by optimism over a potential resolution to the Iran conflict. US President Donald Trump confirmed that the ceasefire with Iran remains in effect, while Tehran stated it is still reviewing a US proposal to end the conflict. US Secretary of State Marco Rubio added that Washington expects Iran’s response soon. Meanwhile, Trump warned the EU that the US would impose "much higher" tariffs on EU goods unless the bloc eliminates its tariffs on US products by July 4. Money markets are pricing in at least two rate hikes by the ECB this year, with a more than 75% probability of a first increase in June. ECB President Christine Lagarde noted on Friday that the central bank is prepared to act swiftly if needed and that the euro area’s economic starting position ahead of the energy shock is more favorable than it was before Russia’s invasion of Ukraine.
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