EUR/USD edges higher above 1.1600 as US Dollar safe-haven demand fades

• EUR/USD gains ground to near 1.1620 in Wednesday’s early Asian session. 
• Trump’s comments that the conflict would be over “very soon” support riskier currencies, such as the Euro. 
• ECB’s Lagarde said the degree of uncertainty and volatility is very surprising and will take necessary steps to control inflation. 

The EUR/USD pair holds positive ground around 1.1620 during the early Asian session on Wednesday. The Euro (EUR) rebounds from a four-month low of 1.1507 against the Greenback as safe-haven demand softens. The final reading of the Harmonized Index of Consumer Prices (HICP) from Germany and the US Consumer Price Index (CPI) data will be released later on Wednesday. 

US President Donald Trump said on Tuesday that the conflict is “very complete, pretty much” and the military operation is “very far” ahead of its initial four- to five-week timeframe, per Bloomberg. His comments eased concerns about a prolonged war in the Middle East and improved market sentiment. 

However, uncertainty remains as Trump gave no clear timeline for halting attacks that have rattled the Middle East and global markets. Meanwhile, the Israel Defense Forces said that it had unleashed a new wave of strikes on Iran and also launched more missiles at Lebanon. The Israeli military said it's targeting infrastructure that belongs to Iran-backed Hezbollah in the south of the Lebanese capital. Signs of the ongoing tensions in the Middle East could boost safe-haven demand for the US Dollar and create a headwind for the major pair. 

The European Central Bank (ECB) President Christine Lagarde said late Tuesday that the degree of uncertainty and volatility is very surprising, making it hard to manage the situation. She further stated that the central bank will take the necessary measures to control inflation.