28.05.202614:40:21UTC+00Euro Bounces Off Six-Week Low

The euro inched up to $1.164, attempting to rebound from a six-week low as markets weighed developments in the Middle East alongside evolving expectations for European monetary policy. Axios reported that US and Iranian negotiators have reached a provisional 60-day memorandum of understanding aimed at extending the ceasefire and launching talks on Iran’s nuclear program, though it still requires final approval from President Trump. While this tentative diplomatic progress lent some support to risk appetite, geopolitical tensions remained elevated. At the same time, investors digested the latest European Central Bank meeting minutes, which revealed that several policymakers saw the April decision to keep rates unchanged as a close call, with some indicating they would have backed a hike had it been put forward. Money markets are now almost fully pricing in a 25-basis-point rate increase on June 11, with at least one additional hike expected by year-end.