EUR/USD Stalls Near 1.1700 as Traders Eye Lagarde Speech, Trump-Xi Talks

EUR/USD hovers around 1.1700, stalling amid ongoing US-Iran stalemate uncertainty and hawkish Fed bets bolstering the dollar, with markets now eyeing ECB President Lagarde's remarks and potential Trump-Xi summit developments. The pair plunged below 1.1700 in late April on Hormuz tensions, Brent at $122/bbl, weak US Q1 GDP (2.0% vs 2.3% exp.), and Fed holding rates at 3.50%-3.75% on an 8-4 vote. It rallied to 1.1796 on May 6 amid US-Iran de-escalation hopes and Trump's Project Freedom pause, but dipped to 1.1765 on May 10 after Trump rejected an Iran offer despite strong NFP (115K vs 62K exp.). ECB June hike odds stand at 84%, with 68bps tightening priced by year-end.