EUR/USD extends its winning streak for the third straight day, trading around 1.1520 during Asian hours on Friday (6/20). The currency pair strengthened as the US dollar (USD) weakened, possibly on technical pullback. The US dollar could recover on increased safe-haven demand, driven by growing concerns over potential US involvement in an Israel-Iran air war.

Iran has not yet decided whether to build a nuclear weapon, despite having developed a large stockpile of enriched uranium needed to make a bomb, according to a senior US intelligence official quoted by The New York Times.

Meanwhile, the chairman of the US Senate Intelligence Committee said that US President Donald Trump will offer Iran a final chance to reach a deal to end its nuclear program. Trump is likely to delay his final decision on launching an attack by up to two weeks.

The Federal Reserve's (Fed) Monetary Policy Report, scheduled for release on Friday, will be submitted to Congress. Traders will likely assess the report as it contains a discussion of "the conduct of monetary policy and economic developments and future prospects."

The EUR/USD pair also gained as the Euro (EUR) gained support from the hawkish tone surrounding the European Central Bank's (ECB) policy outlook. ECB President Christine Lagarde noted that interest rate cuts are coming to an end as the central bank is now "well-positioned" to weather the ongoing uncertainties. (alg)

Source: FXstreet