US dollar pressured by claims of US-Iran draft agreement
The US dollar came under pressure following reports of a US-Iran draft agreement. However, the Fed is slowly abandoning its easing bias, with policymakers discussing the need to keep all options on the table.
US data has shown resilience, and the Fed’s stance is shifting. The FOMC meeting minutes signaled subtle moves before a potential pivot in monetary policy.
The focus will be on Fed’s Waller speech on Economic Outlook, which may contain policy signals. Waller has been a leading indicator for Fed policy and may change his dovish stance.
The market is waiting for the June meeting, which may bring a hawkish surprise if the current trend continues.