Forex Today: Markets remain cautious despite news of US and Iran making progress in talks
Here is what you need to know on Monday, June 22:
Investors cling to a cautious stance at the beginning of the week as they assess the latest headlines coming out of the Middle East. In the second half of the day, May Consumer Price Index (CPI) data from Canada will be watched closely by market participants. Additionally, several policymakers from major central banks will be delivering speeches.
Over the weekend, Iran reportedly reached a draft agreement over how the United States (US) will issue a waiver lifting sanctions on Iranian oil exports, one of the key preconditions before Iran will open talks on its nuclear file. US and Iranian officials met in the presence of Qatari mediators on Sunday and US Vice President JD Vance played down the impact of the Israeli attacks in Lebanon, saying progress had been made towards ending hostilities there. Assessing the latest round of negotiations, mediators said that sides made "encouraging progress" and that they agreed on "a roadmap for a final deal to be reached within 60 days."
Meanwhile, US President Donald Trump threatened to restart the war with Iran on Sunday, in a post on Truth Social that read: "Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble. If they don't, we'll hit Iran very hard again, just like we did last week, only harder!!!"
Iranian negotiators suspended high-stakes talks with the United States (US) in Switzerland in response to a flurry of verbal threats by Trump.
The US Dollar (USD) Index gained nearly 1% in the previous week and was last seen trading marginally higher on the day at around 100.90. Meanwhile, US stock index futures trade mixed.
EUR/USD stays in a consolidation phase above 1.1450 after closing deep in negative territory last week.
The People’s Bank of China (PBOC) announced earlier in the day that it left its Loan Prime Rates (LPRs) unchanged, with the one-year and five-year LPRs standing at 3.00% and 3.50%, respectively. AUD/USD stays relatively quiet and fluctuates at around 0.7000 in the European morning on Monday.
GBP/USD holds steady above 1.3200 early Monday. Citing a source with knowledge of the matter, Reuters reported on Monday that the United Kingdom (UK) Prime Minister (PM) Keir Starmer was reassessing his political future on Sunday after rival Andy Burnham's decisive parliamentary election victory prompted additional ministers from the governing Labour Party to call for his resignation.
Following Friday's choppy action, USD/JPY edges higher on Monday and trades near 161.70. Japan’s Finance Minister Satsuki Katayama reiterated earlier in the day that the officials are ready to respond appropriately to the currency moves at any time as needed.
Gold (XAU/USD) registered its third consecutive daily loss on Friday. XAU/USD corrects higher early Monday and trades near $4,200, rising about 1% on the day.
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.
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