Summary
- The US and Iran said negotiations have entered the final stage as they coordinate a final draft agreement that includes a ceasefire and sanctions relief.
- The possibility of easing geopolitical risk in the Middle East partly reduced demand for haven assets, narrowing the dollar's gains.
- As a result, the dollar index trimmed its intraday advance and international oil prices came under downward pressure.
Forecast Trend Report by Period
The dollar pared its gains as expectations for an agreement between the US and Iran gathered momentum. The prospect of easing tensions in the Middle East also weakened demand for haven assets.
Walter Bloomberg reported on May 21 that the US and Iran are coordinating a final draft agreement that includes a ceasefire and sanctions relief. The two sides are also discussing curbs on Iran's nuclear program and steps to normalize passage through the Strait of Hormuz.
The negotiating teams have exchanged draft language several times recently and have entered the final coordination stage, according to the report. President Donald Trump also said the talks had entered the "final stage."
Markets took the possible easing of geopolitical risk in the Middle East as a sign of improving risk appetite. As a result, the dollar index trimmed its intraday advance, while international oil prices came under downward pressure.
The proposed agreement is also reported to include limits on Iran's nuclear activity and phased sanctions relief. Differences remain, however, over restrictions on uranium enrichment and the inspection framework of the International Atomic Energy Agency.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
