Doha. Peace forever or just for a moment?
The United States and Iran will resume peace negotiations aimed at reaching a lasting solution to the conflict and ending armed actions in the Middle East, President Donald Trump announced.
According to his statement, on Tuesday a special U.S. envoy Steve Witkoff and the U.S. president’s son-in‑law, Jared Kushner, will travel to the capital of Qatar, Doha.
“An anonymous U.S. official said that both sides will for now suspend actions, and ships will be able to freely pass through the Strait of Hormuz,” Bloomberg reports.
“They were still passing through that narrow strait today, although recent attacks remind us of the difficulties in restoring full traffic,” it added.
The fragile agreement between the conflict parties again increases uncertainty in financial markets.
Nevertheless oil prices did not show a clear rebound and essentially returned to levels before the U.S. and Israeli attacks on Iran at the end of February.
ING Think analysts emphasize that the situation could change at any moment, especially if escalating tensions again disrupt the flow of goods.
“As usual, a turning point would be any disruption of flows through the Strait of Hormuz, especially given the limited safety buffer resulting from heavily depleted reserves,” it was reported.
“The dollar rally showed signs of fatigue at the end of last week and we believe that this week hawkish data may be needed to prevent further weakening. Of course any change in the pricing of risk associated with the Persian Gulf region would be a clear factor favoring dollar strengthening, given the additional flexibility in the Fed’s hawkish policy,” added.
Economists reminded that in the coming days the focus will be on the U.S. macroeconomic data calendar and the appearance of the new Federal Reserve Chair, Kevin Warsh, in Sintra.
“One of the potential risk factors for a dollar decline that should be considered this week is the Supreme Court ruling on the dismissal of Fed member Lisa Cook,” they said.
“It could again stoke concerns about Fed independence, which could significantly burden the dollar, which currently largely relies on the re‑basement trend,” they added.
The case of Lisa Cook, a former Fed Governor who was dismissed last year by Trump, has become one of the symbols of the collapse of the U.S. central bank’s decision‑making freedom.
More on this was written in the article: Donald Trump sued. The erosion of Fed independence seriously threatens Americans
See also: Will the dollar surprise again? The expert issued a forecast for USD/PLN and EUR/USD. “It’s hard for me to believe there will be no more fires”
Dollar and euro rates on Tuesday, June 30
The dollar to zloty rate on Tuesday, June 30 is at 3,76 PLN.
Read also: Dollar rate on a long road to 4 PLN? The expert issued forecasts for USD/PLN and EUR/USD. “The dollar may gain”
Chart. Dollar to zloty rate (USD/PLN)
Source: Trading Economics.
The euro to dollar rate reaches 1,13 USD.
Chart. Euro to dollar rate (EUR/USD)
Source: Trading Economics.
Read also: Dollar rate before the chance to break out? Expert: “Capital will flow back to USD”
See also: Dollar rate before a “nervous and dynamic” move, euro waiting for a drop? Expert issued a forecast for USD/PLN and EUR/USD
Sources: Bloomberg, ING Think.
