Washington (AFP/AFP) – The dollar showed no clear direction on Monday, with uncertainty in the Middle East following the failed negotiations between Washington and Tehran not encouraging traders to take a position, ahead of several central bank meetings.
“Over the weekend, the chaotic geopolitical situation in the Middle East hardly evolved,” said Monex USA, despite investors’ hopes.
On a visit to 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 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, which was welcomed by the market with optimism, initially pushed back the dollar at the start of the day.
However, this momentum faded, and by 18:15 GMT, the US currency stabilized against the euro (-0.01% at $1.1723) and against 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 of Convera.
The speeches and projections of these institutions will be more closely watched than the rate decisions: the Bank of Japan, the US Federal Reserve, the European Central Bank, and the Bank of England are all expected to maintain monetary status quo.
This could also be the last meeting of this kind with Jerome Powell at the helm of the Fed.
Donald Trump’s chosen successor, Kevin Warsh, is expected to have his nomination confirmed quickly thanks to the support of a Republican senator who had previously blocked the process due to a judicial inquiry, abandoned on Friday.
Inflation indicators in the US and the eurozone, to be released later in the week, will also shed light on the consequences 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 |
