Euro drifts higher above 1.1450 as US, Iran sign initial agreement to end war

 The EUR/USD pair recovers some lost ground near 1.1460, snapping the two-day losing streak during the early Asian session on Friday. The Euro (EUR) strengthens against the US Dollar (USD) after US President Donald Trump signed a deal with Iran to end the war that has disrupted global energy supplies.

The United States (US) and Iran signed an initial agreement, kicking off 60 days of negotiations on a final deal to end the war, per CNN. Additionally, the US military earlier confirmed it had ended its blockade on Iranian ports near the Strait of Hormuz, as officials claim millions of barrels are once again flowing through the vital waterway. Positive developments surrounding the US-Iran peace deal could boost riskier assets, such as the shared currency, in the near term. 

The Federal Open Market Committee (FOMC) voted unanimously to keep its benchmark overnight borrowing rate unchanged in a range of 3.5%-3.75% on Wednesday. During the press conference, new Chairman Kevin Warsh said that “price stability” would be the Fed’s guiding principle. A hawkish hold from the Fed could lift the Greenback and create a headwind for the major pair. 

Futures traders are now pricing in a quarter-percentage-point rate hike at the Fed's September meeting, with some probability of a move as soon as next month’s meeting.