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Dollar Softens as Iran Deal Hopes Improve Risk Sentiment

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Dollar Softens as Iran Deal Hopes Improve Risk Sentiment
The US dollar edged lower as investor sentiment improved after comments that Iran is willing to resume negotiations, easing concerns over a prolonged conflict in the Middle East. The pullback in oil prices helped reduce immediate inflation fears, supporting gains across equity markets and weighing on demand for traditional safe-haven assets. At the same time, markets continued to assess the latest Federal Reserve minutes, which highlighted ongoing uncertainty around the inflation outlook and reinforced expectations that policymakers will remain data dependent in the months ahead.
Looking ahead, attention is turning to upcoming US inflation data, which will provide an important test of whether price pressures are easing sufficiently to keep the Federal Reserve on hold. Notes that while geopolitical risks remain elevated and could quickly reignite volatility in energy markets, any sustained decline in oil prices would help ease inflation concerns and support broader risk appetite. Investors also continue to monitor the outlook for global growth, with resilient corporate earnings and improving market sentiment expected to remain key drivers during the second half of the year.

 

General Market

Wall Street

  • Dow Jones: -0.27% to 52,492
  • S&P 500: -0.81% to 7,543
  • Nasdaq: +0.07% to 29,722
Asia-Pacific
  • ASX 200: -0.02% to 8,737
  • Nikkei: +0.07% to 68,669
  • Shanghai Composite: +1.69% to 4,669
Europe
  • FTSE: +0.00% to 10,463
  • DAX: +0.89% to 25,115
  • CAC: +0.26% to 8,329

Headlines to Watch

United States

  • Fed Monetary Policy Report → inflation and rate outlook in focus.
  • Fed speakers → markets watching for policy guidance after FOMC minutes.
  • Inflation expectations remain the key driver for USD and Treasury yields.

Europe

  • German & French CPI → confirms Eurozone inflation trend.
  • Italian Industrial Production → signal for regional economic momentum.
  • ECB policy expectations remain sensitive to incoming inflation data.

Asia-Pacific

  • Japan PPI → key gauge of pipeline inflation and BoJ policy outlook.
  • AUD & NZD remain driven by US rates and global risk sentiment.
  • China growth and commodity demand continue to influence regional markets.

Global / Geopolitics

  • Middle East developments remain a key driver of oil prices and inflation expectations.
  • Trade policy developments continue to influence global risk sentiment.
  • Bond yields and central bank expectations remain the primary market drivers.
Currency Pair Mid-market Rate
AUD/USD 0.6938
AUD/NZD 1.2047
AUD/JPY 112.68
AUD/CNY 4.7150
AUD/EUR 0.6069
AUD/GBP 0.5174
AUD/HKD 5.4370

 

 

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