The American dollar showed no clear direction on Monday, with uncertainty in the Middle East following the failed negotiations between Washington and Tehran not prompting traders to take a position before various 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 causing the failure of their peace talks.
American President Donald Trump is set to hold a crisis meeting on Iran on Monday, according to local media sources.
According to Axios, Iran has presented the United States 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 article, received with optimism by the market, initially pushed the dollar down early in the day.
However, this momentum waned, and by around 2:15 pm, the American currency was stabilizing against the euro (-0.01% at $1.1723) and the British pound (-0.04% at $1.3538).
“This week is rich in significant events for the markets, starting with a wave of meetings of major central banks,” noted Kevin Ford from Convera.
The speeches and projections of these institutions will be more closely watched than rate decisions: the Bank of Japan (BoJ), the Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of England (BoE) are all expected to opt for monetary status quo.
It could also be the last meeting of this kind with Jerome Powell at the head of the Fed.
Donald Trump’s chosen candidate to succeed him, Kevin Warsh, is expected to have his nomination quickly confirmed with the support of a Republican senator who had previously blocked the process due to a judicial investigation, which was abandoned on Friday.
Inflation indicators in the United States and the Eurozone, to be published later in the week, will also shed light on the impact of the conflict in the Middle East on prices.
