Watch on the Middle East and a shift on the USA-Poland line
Iran stated that the latest U.S. proposal regarding the form of ending the war in the Middle East "has somewhat reduced the differences" between the conflict parties.
ISNA reminds that Tehran is preparing a response for the White House, but "further rapprochement requires Washington to stop inciting war".
The Iranian Ministry of Foreign Affairs confirmed that the discussion is currently on a 14-point plan, which includes, among other things, opening the Strait of Hormuz and lifting the blockade of Iranian ports.
Then, in accordance with Tehran's will, negotiators would engage in detailed talks about Iran's nuclear ambitions.
"Iran has not said when it intends to give the United States an official response. The Iranian foreign ministry again emphasized that it demands assurance that the fighting will end on all fronts, including in Lebanon. It also called for the unlocking of frozen assets," reports Bloomberg.
Meanwhile Donald Trump conveyed information about plans to send 5,000 U.S. soldiers to Poland.
"In light of the successful election results, in which the current President of Poland Karol Nawrocki won, whom I proudly supported, and considering our relationship with him, I am pleased to announce that the United States will send an additional 5,000 soldiers to Poland," the U.S. President said in a post on Truth Social.
Pentagon spokesperson Joel Valdez said that presenting the above decision as "unexpected and made at the last minute" would be a mistake.
Bloomberg emphasizes that it is unclear when the forces will arrive and whether they will station permanently in Poland.
Source: Truth Social.
Read also: Will the dollar rate surprise again? The expert issued a forecast for USD/PLN and EUR/USD. "It's hard for me to believe there won't be more fires"
See also: The dollar rate on a long road to 4 PLN? The expert issued forecasts for USD/PLN and EUR/USD. "The dollar could gain"
Dollar and euro rates on Friday, May 22
The dollar to zloty rate on Friday, May 22 is at 3,65 PLN (+0.25%).
"The currency market is relatively calm and reacts only to small fluctuations to reports from Iran," analysts at ING Think said.
"The implied volatility of G7 currency rates over the monthly horizon remains at a level close to the lowest values this year, suggesting that the currency market does not factor in any radical changes to the situation," they added.
Economists emphasize that alongside Middle Eastern events, the direction of monetary policy is currently key, which will be decided by the Federal Reserve and other central banks.
"Since mid-May, the dominant theme has been a hawkish revision of expectations regarding the Fed cycle and a strengthening dollar. The market currently prices a Fed rate hike of 20 basis points to December," we read in the bank's report.
Chart. Dollar to zloty rate (USD/PLN)
Source: Trading Economics.
The euro to dollar rate reaches 1,16 USD (-0.11%).
Chart. Euro to dollar rate (EUR/USD)
Source: Trading Economics.
Read also: Dollar rate before a 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
Source: Bloomberg, Truth Social, ING Think.
