Is Trump failing in the Middle East?
Prime Minister of Israel Benjamin Netanyahu announced the suspension of Israeli military operations against Iran.
In a Monday television address he also emphasized that the above decision does not mean abandoning retaliatory actions.
As reported by Israeli station N12, military operations carried out by Israel in southern Lebanon will "continue with full force".
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The Iranian Joint Chiefs of Staff warned, however, that if Israel continues attacks, also in Lebanon, "one should expect far harsher and more crushing actions than so far".
Iran and Israel agreed to limit mutual attacks after a sudden escalation of tensions that threatened to collapse ongoing peace negotiations.
The team at ING Think claims that events still affect the dollar’s rate, which has gained value in recent days.
"In the current situation it is hard to deny, that the dollar is strong. Data still indicate a healthy U.S. economy, and the latest military actions between the U.S. and Iran have increased risk aversion in global markets," analysts said.
Economists point out that military actions continue despite the U.S. House of Representatives adopting a resolution calling on Donald Trump to withdraw U.S. forces from Iran.
They emphasize that the vote carries a significant political message, but does not block the administration’s ability to carry out further military actions.
"It underscores the internal pressure to reach a peace agreement, but markets already understand this and it has not yet translated into tangible progress in negotiations," they added.
The station CNBC described the vote result as "Donald Trump’s latest defeat in Congress".
The resolution was adopted with a vote of 215 to 208, despite the Republican Party holding a slim majority in both the House and the Senate.
"The vote is largely symbolic. Every resolution would also need to be adopted by the Senate to take effect, and would require a two‑thirds majority in both chambers to break Trump’s near‑certain veto," the explanation read.
However, concern arises from how the President of the United States manages the escalating conflict that has been ongoing since the end of February.
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Dollar and euro rates on Tuesday, June 9
The dollar to zloty rate on Tuesday, June 9 is at 3,66 PLN.
Chart. Dollar to zloty rate (USD/PLN)
Source: Trading Economics.
The euro to dollar rate reaches 1,15 USD.
Chart. Euro to dollar rate (EUR/USD)
Source: Trading Economics.
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Sources: Bloomberg, ING Think, CNBC.
