The dollar takes a break, due to lack of geopolitical progress

The dollar is standing still on Tuesday, in the absence of notable progress on the geopolitical front, while currency traders are wondering about the monetary direction of the American central bank (Fed). Donald Trump said Tuesday that discussions between the United States and Iran were continuing “without interruption”refuting reports that Tehran had broken off dialogue with Washington because of the Israeli offensive in Lebanon.

“Where this will lead, we don’t know”the American president wrote on his Truth Social network about these negotiations with Iran, carried out for weeks to put an end to the war launched on February 28. “Events in the Middle East are keeping everyone in suspense”explain Monex USA analysts, and currency traders are therefore adopting a wait-and-see attitude. Around 7:00 p.m. GMT, the greenback was almost in balance (+0.02%) against the single European currency, at 1.1628 dollars per euro, and lost only 0.11% to the British currency, at 1.3469 dollars per pound.

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While waiting for more clarity on the geopolitical front, market players are turning to macroeconomic indicators. In the United States, the JOLTS report published on Tuesday noted the number of job openings in April at the highest since November 2024. If the job market proves robust in the long term, the Fed could focus on its objective of price stability. And maintain its rates at their current level, or even increase them, to contain inflation, which would support the dollar.

At the same time, bitcoin fell below $70,000 on Tuesday for the first time in almost two months, and fell around 7:00 p.m. GMT by 5.85% to $67,180.06. The price of the famous cryptocurrency fell with the action of the Strategy company, known for accumulating bitcoins as a store of value, after it revealed in a document sent to the American market regulator that it had sold 32 bitcoins for 2.5 million dollars. This is the first time since 2022 that the American company has sold bitcoins according to the specialized press, too “this news weighed on investor morale, both for Strategy shares and for bitcoin”a affirmé Neil Wilson, de Saxo Markets.