The euro (EUR) gained moderately against the British pound (GBP) on Friday. The pair rose above 0.8700 as the European session opened, but is on track for a modest weekly decline, with both currencies paring gains against the safe-haven US dollar (USD) as the Iran ceasefire reels.
Tehran has threatened to withdraw from the peace process after more than 300 people were killed in indiscriminate Israeli attacks in Lebanon. On the other hand, US President Donald Trump complained about Iran’s mismanagement of traffic in the Strait of Hormuz, warning the Truth Social website that “we have no such agreement.”
Data released by Hormuz Trail Monitor shows that only seven ships crossed the critical waterway in the last 24 hours. This represents about 5% of the 140 ships that passed through the strait on an average day before the war, while Iranian authorities are reported to be collecting tolls on tankers.
Inflation pressure in Germany increases rapidly in March
In an economic filing, Germany’s Harmonized Index of Consumer Prices (HICP) confirmed preliminary data showing inflation rose 1.2% in March and 2.7% year-on-year, from 0.4% and 1.9% respectively, helped by higher energy prices due to the war in the Middle East.
These data fuel market expectations that the European Central Bank (ECB) will be forced to enhance interest rates in the coming months, and perhaps as early as April. Meanwhile, the Bank of England (BoE) is taking a “wait and see” stance and is not expected to tighten its monetary policy in the near future. This gives the euro a competitive advantage.
Economic indicator
Harmonized Index of Consumer Prices (m/m)
Harmonized Index of Consumer Prices (HICP), published by the German Statistics Office You are ready on a monthly basis, is an inflation rate based on a statistical methodology that has been harmonized across all European Union (EU) Member States to facilitate comparisons. MoM data compares commodity prices in the reference month with the previous month. Generally speaking, a high reading is bullish for the euro (EUR), while a low reading is bearish.
Read more.
Economic indicator
Harmonized Price Index of Consumer Goods and Services (y/y)
Harmonized Index of Consumer Prices (HICP), published by the German Statistics Office You are ready on a monthly basis, is an inflation rate based on a statistical methodology that has been harmonized across all European Union (EU) Member States to facilitate comparisons. The y/y reading compares prices in the reference month with the previous year. Generally speaking, a high reading is bullish for the euro (EUR), while a low reading is bearish.
Read more.
