Euro Gains Against Pound as Hopes for Hormuz Ceasefire Rise

The Euro has firmed up against the British Pound due to hopes of a US-Iran ceasefire that would reopen the Strait of Hormuz. This development is expected to ease energy-cost fears and lend the Euro a modest bid.

Russian agency RIA Novosti reported on Tuesday that Washington and Tehran had agreed to a ceasefire, with an announcement expected in the coming days. The prospect of calmer shipping lanes and softer fuel costs has helped the single currency edge ahead of the Pound.

The UK calendar is quiet, leaving Sterling to trade off the broader risk mood. A solid set of Eurozone surveys or formal confirmation of the Hormuz reopening could see EUR/GBP extend toward the 0.8575 region.