Intel Earnings and UK PMI Data to Define Market Sentiment

EUR/USD remained supported above the 1.1700 level in early Thursday trading as improved risk sentiment weighed on the US Dollar. The move comes after US President Donald Trump signaled an extension of the ceasefire with Iran, helping to calm markets.

According to reports, Washington agreed to prolong the truce at Pakistan’s request while awaiting a coordinated proposal from Tehran. The development has eased immediate concerns about a renewed escalation in the region, which had previously driven energy prices higher and pressured risk-sensitive assets.

However, geopolitical risks have not fully subsided. Iran continues to assert control over the Strait of Hormuz, a critical global shipping route, and tensions remain elevated following reports of hostile actions in the area. Iranian officials have also accused Israel of violating ceasefire terms, complicating prospects for stability. President Trump indicated there is no fixed timeline for negotiations or a resolution to the conflict, emphasizing a flexible approach to ongoing discussions.

On the monetary policy front, European Central Bank officials appear inclined to maintain current interest rates at the upcoming April meeting. Governing Council member Martins Kazaks noted that policymakers have the “luxury” of waiting before making further moves.

Market participants now turn their focus to the release of the preliminary S&P Global Purchasing Managers Index (PMI) data later today, which could provide further direction for the currency pair.

Gold prices remained under pressure on Wendesday as a stronger US Dollar continued to weigh on the precious metal.

Frictions surrounding a US naval blockade of Iranian ports, along with an ongoing standoff over the Strait of Hormuz, have reinforced demand for the Greenback’s safe-haven appeal.

Although US President Donald Trump recently announced a temporary extension of the ceasefire with Iran, market confidence in a lasting de-escalation remains limited. Negotiations appear stalled, with Washington maintaining its naval presence while Tehran insists on the removal of the blockade as a precondition for further talks. Adding to concerns, Iran’s Islamic Revolutionary Guard Corps reportedly seized two container ships, marking a further escalation in regional tensions.

At the same time, disruptions to energy flows through the Strait of Hormuz have kept crude oil prices elevated, contributing to broader inflationary pressures. This backdrop has led investors to reassess expectations for US monetary policy, with markets now anticipating a more cautious approach from the Federal Reserve.

While policymakers have previously signaled the possibility of a rate cut later this year, persistent inflation and resilient economic data have reduced the urgency for easing. The prospect of higher-for-longer interest rates continues to support the US Dollar and diminishes the appeal of non-yielding assets such as gold.

Oil prices extended their upward momentum on Thursday as ongoing tensions between the United States and Iran, coupled with stalled diplomatic efforts, continued to disrupt expectations for global supply.

Market sentiment remains heavily influenced by developments in the Persian Gulf, where hopes for a near-term resolution have diminished. Analysts note that the lack of meaningful progress in peace talks has prompted traders to reassess supply risks, particularly as shipping disruptions through the Strait of Hormuz persist.

Despite a temporary ceasefire extension announced by US President Donald Trump following mediation efforts, both Washington and Tehran continue to impose restrictions on maritime transit through the key waterway. The Strait of Hormuz, which previously handled roughly one-fifth of global oil shipments, remains a focal point of concern.

Recent developments have further heightened tensions. Iran reportedly seized two vessels attempting to pass through the strait, while the United States has maintained a naval blockade targeting Iranian trade routes. Iranian officials have indicated that any lasting ceasefire would require the removal of these restrictions, underscoring the fragile state of negotiations.

On the supply side, US energy exports reached a record high, rising to 12.88 million barrels per day as global buyers sought alternatives amid Middle East disruptions. Inventory data from the Energy Information Administration showed a mixed picture: crude stockpiles increased by 1.9 million barrels, defying expectations for a draw, while gasoline and distillate inventories fell sharply, signaling robust demand.

U.S. stock index futures moved modestly lower on Wednesday evening, following record-setting gains on Wall Street, as investors remained cautious amid lingering geopolitical tensions between the United States and Iran despite a temporary ceasefire extension.

Investor optimism was initially fueled by U.S. President Donald Trump extending the ceasefire with Iran following mediation efforts. The move helped ease immediate concerns over a broader conflict, although uncertainty persists around Iran’s response and the continued U.S. naval presence near the Strait of Hormuz, a vital global oil transit route.

Sentiment, however, turned more cautious after Iran’s Islamic Revolutionary Guard Corps reportedly seized two container ships and opened fire on another vessel in the region, citing violations of maritime rules.

On the corporate front, earnings continued to provide support to equities. Shares of Micron Technology reached record highs, while GE Vernova surged after raising its revenue outlook. Boeing advanced on strong aircraft demand, and Boston Scientific gained following upbeat results.

In after-hours trading, Tesla reported mixed quarterly results. The company posted revenue of approximately $22.4 billion, falling short of expectations, although profit and free cash flow exceeded forecasts.