Quick agreement between the US and Iran? Trump provides a 'timeline': Late April!
On Wednesday (15th) local time, U.S. President Trump stated that he believed the war with Iran was "about to end," and hinted that negotiations with Iran would resume this week.
Express News | The US dollar edged lower amid risks to the Federal Reserve's independence and hopes for peace in the Iran conflict.
The easing of geopolitical tensions has driven a recovery in risk appetite, with the US Dollar Index continuing to adjust.
The US Dollar Index remained under pressure during the Asian trading session on Thursday, hovering around 97.90, continuing its downward trend since April 6. The overall performance of the dollar remains weak, primarily influenced by improved market risk sentiment and shifts in macro interest rate expectations. Signs of easing tensions between the United States and Iran have emerged, with markets anticipating a gradual de-escalation of conflicts, and even the possibility of a two-week ceasefire extension to facilitate long-term negotiations. Despite lingering uncertainties, the overall risk premium has significantly declined, prompting capital outflows from safe-haven assets such as the US dollar. Meanwhile, although the Strait of Hormuz remains effectively...
A recovery in risk appetite combined with a weakening US dollar has extended the adjustment in the USD/JPY pair, which may be nearing a short-term peak.
The US dollar fell against the Japanese yen during the Asian session on Thursday, with the exchange rate dropping to around 158.70, close to the week's low. Although the dollar experienced a brief rebound earlier, it lacked sustained momentum, and the overall trend remains weak. The current shift in market sentiment towards optimism has weakened the appeal of the US dollar as a safe-haven asset, which is one of the main factors driving the decline in the exchange rate. Negotiations between the United States and Iran are still ongoing, with markets generally expecting that tensions may gradually ease or even come to an end. This expectation has significantly boosted global risk appetite, leading capital to flow out of safe-haven assets. The US Dollar Index has fallen to levels near its lowest since early March, exerting downward pressure on USD/JPY.
Both the US and Iran have denied reaching a consensus on extending the ceasefire, while Hezbollah in Lebanon stated its agreement with the ceasefire on the condition that Israel must fulfill its obligations.
Multiple sources have recently reported that the United States and Iran may hold a second round of negotiations later this week, but the specific time and location have yet to be determined.
Gold Trading Alert: Prices Trapped in a 'War Desensitization' Cycle; Rate Cut Hopes Dashed, Weighing on Bullish Sentiment? Focus on Three Key Variables
On Wednesday (April 15), spot gold plummeted after hitting a one-month high of $4,871.28, eventually closing near $4,790, with a single-day decline of nearly 1%. US gold futures also fell in tandem by 0.5%, settling at $4,823.60. Within a short span of 24 hours, gold transformed from a safe-haven asset into a battleground for profit-taking, all due to the complex chain reaction triggered by Trump’s statement that the “Iran war is nearing an end.” On Thursday (April 16), during the early Asian trading session, spot gold edged up slightly, currently trading around $4,820 per ounce, with gains of approximately 0.6%, while the US dollar continued to strengthen.