• EUR/USD trades with mild gains near 1.1430 in Friday’s early Asian session.
• ECB saw inflation rising despite nearly three expected hikes, accounts showed.
• US official said Washington remains committed to a resolution with Iran.

The EUR/USD pair posts modest gains around 1.1430 during the early Asian session on Friday, bolstered by a softer US Dollar (USD). The European Central Bank (ECB) is grappling with elevated core inflation, forcing traders to price in more aggressive tightening despite mixed guidance from ECB officials. 

Accounts of the meeting showed on Thursday that the ECB policymakers gathering last month were presented with projections showing inflation staying above target into next year despite nearly three ECB interest rate hikes. The ECB raised rates at the June policy meeting, and traders expect it to do so twice more over the next year to contain the fallout from the Iran war on energy prices.

Traders raise their bets on ECB rate hikes again in recent days on signs that an agreement between the US and Iran to end the war is in jeopardy. This, in turn, provide some support to the shared currency.

Markets will closely monitor the developments surrounding the US-Iran conflict. Any signs of rising tensions could boost a safe-haven currency and act as a headwind for the major pair. US official on Thursday signaled that it is still committed to the memorandum of understanding with Iran, even though US President Donald Trump’s declared earlier this week that the framework deal to end the Iran war was “over.” 

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