Washington – The dollar showed no clear direction on Monday, as uncertainty in the Middle East following the failure of negotiations between Washington and Tehran kept traders from taking a position, ahead of several central bank meetings.
“Over the weekend, the chaotic geopolitical situation in the Middle East hardly changed,” noted Monex USA, despite investors’ hopes.
During a visit to Russia, Iranian Foreign Minister Abbas Araghchi accused Washington on Monday 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, received optimistically by the market, initially pushed the dollar lower at the beginning of the day.
But this momentum waned, and by 18:15 GMT, the US currency stabilized against the euro (-0.01% at $1.1723) and the British pound (-0.04% at $1.3538).
“Monetary news and central banks”
“This week is full of significant news for the markets, starting with a wave of major central bank meetings,” said Kevin Ford from Convera.
The speeches and projections from these institutions will be more closely monitored than 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 that had been blocking the process due to a legal investigation, which was dropped on Friday.
Later in the week, inflation indicators in the US and the eurozone will also shed light on the impact of the conflict in the Middle East 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
