Euro declines as market caution lifts USD
EUR/USD depreciates after two days of gains, trading around 1.1650 during the Asian hours on Monday. The pair is currently losing ground as the US Dollar (USD) maintains its strength, driven by market participants closely assessing the highly fluid developments surrounding United States (US)-Iran peace negotiations.
Because the Greenback functions as a premier safe-haven asset, any signs of escalating geopolitical friction or a breakdown in Middle East diplomacy could trigger further safe-haven inflows. Consequently, this geopolitical uncertainty continues to create a persistent near-term headwind for the EUR/USD pair.
US President Donald Trump seeks to alter and reinforce several key terms of the proposal aimed at ending the US-Israel war on Iran. According to the BBC, these requested changes specifically target regulations surrounding the strategic Strait of Hormuz and the mandatory removal of highly enriched uranium.
Axios further reported that Trump wants to tighten multiple points of the deal he deems critical, particularly the handling and disposal of Iran’s nuclear material. A senior US official noted that Trump has been briefed that a formal response from Iran regarding these adjusted terms could take up to three days.
Iranian officials are projecting a mix of caution and firm resolve. Iranian Foreign Minister Abbas Araghchi confirmed on Sunday that dialogue and message exchanges with Washington remain ongoing. However, he dismissed current media commentary as mere speculation, emphasizing that it is impossible to evaluate the negotiations until a definitive, clear outcome is reached.
Meanwhile, Iran's parliament speaker and top negotiator, Mohammad Bagher Ghalibaf, established a strict boundary for the talks, asserting that Tehran will not accept any agreement with Washington unless it explicitly ensures that the rights of the Iranian people are secured.
Flash May’s inflation rose in France, Italy, and Spain, but slowed in Germany. All exceeded the European Central Bank (ECB)'s 2% target. Recent ECB Meeting Minutes showed some members favored an April hike, backing expectations of a 25-basis-point increase on June 11.
Traders are shifting their immediate focus to the release of German Retail Sales data for April, which will offer a clearer snapshot of Eurozone consumer health and likely drive the EUR/USD pair's next short-term technical move.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Crude Oil sells off and takes it all back on Saudi cargoes through Oman
Jensen Huang: Nvidia chip sales will double next year compared to this year, AI cannot be regulated like social media
Jensen Huang opposes applying social media regulations directly to AI, arguing that social media is a product, while AI is an underlying technology that supports other technologies and products. He believes regulation should target products, not the technology itself. He emphasizes rigorous testing and states that products should be withheld from release if they are not safe enough. "AI safety is of utmost importance."
What to buy after the Federal Reserve raises interest rates? Historically, US energy and technology stocks outperform while real estate lags. Goldman Sachs: The pace of rate hikes determines the US stock market.
U.S. stock performance in the 12 months after the first Federal Reserve rate hike: According to Jefferies, the energy sector led with an average return of 22.4%, followed by information technology at 15.4%. According to Charles Schwab, real estate underperformed the S&P 500 by 4.3%, making it the worst of the 11 sectors. Goldman Sachs states that the pace of rate hikes is the core variable affecting U.S. stocks; currently, if the 10-year U.S. Treasury yield rises by 50 basis points within a month, it will create "rapid rate hike" pressure.
Bank of America Ripple Report Fuels XRP Debate
Crypto prices
More
