Flames on the USA-Israel line
U.S. Vice President J.D. Vance expressed dissatisfaction with Israel's stance on the latest arrangements concerning the end of military operations in the Middle East.
The protocol of the agreement signed on Wednesday by Donald Trump calls for the end of the conflict between Washington and Tehran, which caused chaos in global financial markets.
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According to Bloomberg, many Israelis, including people close to Prime Minister Benjamin Netanyahu, believe the document foresees too far-reaching financial concessions to Iran, without imposing sufficient restrictions on the development of ballistic missile programs.
Critics of the agreement also question provisions that foresee a permanent arms suspension in Lebanon, where Israel struggles with Iran-backed Hezbollah.
Vance, who is responsible for shaping the current U.S.-Iran agreement, stated that Israeli politicians, including Itamar Ben Gvir, could abuse Trump’s patience.
“This worries me,” Vance said. “You saw how some members of the Bibie [Benjamin Netanyahu – przyp.red.] cabinet publicly attacked the agreement, and in some ways very personally attacked the U.S. President,” he noted.
Rising tensions between U.S. and Israeli decision-makers are expected to affect the course of Middle East negotiations, while questioning the expected stabilization of oil prices and reducing inflationary pressure.
Additionally, Trump is strengthening rhetoric about resuming attacks in the region if justified.
In an interview with Channel 14, asked whether he would defend Israel if it decided to attack Iran on its own, he said: “If it isn’t a serious attack, of course.”
The above events consistently affect dollar rate quotes, which, according to the forecast by ING Think, do not have enough room to strengthen.
“And although dollar demand may hold, we do not see a factor that could cause a significant rise in the rate,” analysts said.
“This is especially visible in the context of lower energy commodity prices due to the signing of the U.S.-Iran agreement and a favorable investment climate,” they added.
Federal Reserve kept interest rates unchanged on Wednesday, indicating the possibility of hikes in the near future.
“Because nine of the 18 Fed members foresee at least one rate hike this year, the Fed appears ready to act if inflation continues to move in the wrong direction,” the ING Think report reads.
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Dollar and euro rates on Friday, June 19
The dollar to zloty rate on Friday, June 19 is at 3,72 PLN (+0.29%).
Chart. Dollar to zloty rate (USD/PLN)
Source: Trading Economics.
The euro to dollar rate reaches 1,14 USD (-0.18%).
Chart. Euro to dollar rate (EUR/USD)
Source: Trading Economics.
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Source: Bloomberg, ING Think.
