Washington – The dollar showed no clear direction on Monday, with uncertainty in the Middle East following the failure of negotiations between Washington and Tehran not prompting traders to take a position before several central bank meetings.
“Over the weekend, the chaotic geopolitical situation in the Middle East has hardly changed,” noted Monex USA, despite investors’ hopes turning out to be in vain.
While visiting Russia, Iranian Foreign Minister Abbas Araghchi on Monday accused Washington of sabotaging their peace talks.
US President Donald Trump is set to hold a crisis meeting on Iran on Monday, according to local media reports.
According to Axios, Iran has presented the US with a new proposal to reopen the Strait of Hormuz and end the war, and only negotiate on the nuclear issue at a later date.
This news, initially welcomed by the market with optimism, initially pushed the dollar lower at the start of the day.
However, this momentum fizzled out, and by 18:15 GMT, the American currency was stabilizing against the euro (-0.01% at 1.1723 dollars) and the British pound (-0.04% at 1.3538 dollars).
“Military news and central banks”
“This week is full of significant news for the markets, starting with a series of major central bank meetings,” noted Kevin Ford from Convera.
The speeches and projections of these institutions will be more closely watched than interest rate decisions: the Bank of Japan (BoJ), the US Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of England (BoE) are all expected to maintain monetary status quo.
This could also be the last meeting of its kind with Jerome Powell at the helm of the Fed.
Donald Trump’s chosen successor, Kevin Warsh, is expected to have his nomination quickly confirmed thanks to the support of a Republican senator who had previously blocked the process due to a legal investigation, which was dropped on Friday.
Inflation indicators in the US and the eurozone, to be released later in the week, will also shed light on the impact of the Middle East conflict on prices.
“Currency exchange rates”
| Monday 18:15 GMT | Friday 22:00 GMT | |—————-|—————| | EUR/USD | 1.1723 | 1.1722 | | EUR/JPY | 186.89 | 186.86 | | EUR/CHF | 0.9209 | 0.9200 | | EUR/GBP | 0.8659 | 0.8661 | | USD/JPY | 159.42 | 159.38 | | USD/CHF | 0.7855 | 0.7850 | | GBP/USD | 1.3538 | 1.3532 |
afp/rp
