Peace in the Middle East. Fragile or final?
The United States and Iran have released the text of a temporary agreement aimed at ending armed actions in the Middle East.
According to Reuters, during the G7 summit in Évian-les-Bains, France, Donald Trump withdrew from some earlier statements regarding Tehran.
The U.S. President deemed it "unfair" to deprive Iran of ballistic missile capabilities, even though he had previously advocated for their complete elimination.
Trump still maintains his hard stance, warning that if Tehran fails to meet its commitments, Washington may resume military actions.
"If they violate the agreement, we will bomb them to the ground", the Republican said during a press conference.
"I don’t want them to do that. I want them to keep the agreement," he added.
The parties are expected to sign a protocol on Friday in Switzerland outlining the terms for extending the ceasefire for 60 days.
The magazine TIME, citing the 14‑point version of the agreement, reports that the plan includes "ending military operations on all fronts, including in Lebanon".
The document assumes Iran will never be able to work on developing nuclear weapons, and existing enriched uranium stocks will be reduced through depletion on site under the supervision of MAEA inspectors.
Tehran could gain access to a US$300 billion development fund for reconstruction and economic development, contingent on fulfilling the agreement’s obligations.
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Dollar and euro rates on Thursday, June 18
The dollar to zloty on Thursday, June 18 is at 3,68 PLN.
"We acknowledge that after announcing the agreement between the U.S. and Iran, the risk balance for the U.S. dollar seems to tilt towards declines," analysts from ING Think said.
"Lower energy commodity prices strengthen the arguments for a dovish revaluation, while the swap curve remains unresponsive to improved sentiment in the Middle East and still values a tightening monetary policy of 21 basis points to December," they added.
During the June meeting of the Federal Open Market Committee, rates were kept in the range 3,5-3,75%.
This was the first Fed meeting chaired by Donald Trump’s nominee, Kevin Warsh, after which both "dovish" decisions and statements on future actions were expected.
Chart. Dollar to zloty (USD/PLN)
Source: Trading Economics.
The euro to dollar rate reaches 1,15 USD.
Chart. Euro to dollar (EUR/USD)
Source: Trading Economics.
Also read: Dollar rate before a breakout? Expert: "Capital will flow back to USD"
See also: Dollar rate before a "nervous and dynamic" move, euro waiting for a drop? Expert issued forecasts for USD/PLN and EUR/USD
Sources: Reuters, TIME, ING Think.
