Trump signals progress in Iran negotiations but insists on an all-or-nothing deal, easing geopolitical tensions and weighing on the USD.
The USD weakened as markets priced in reduced geopolitical risks amid diplomatic progress with Iran. President Trump indicated negotiations are advancing but stressed any agreement must be comprehensive, rejecting a partial deal like the JCPOA.
Trump’s post on Truth Social highlighted discussions with Middle Eastern leaders, including Saudi Arabia and the UAE, urging them to join the Abraham Accords as part of a broader settlement. He warned failure to reach a deal could escalate military conflict.
The decline in the USD coincided with thin liquidity due to the US Memorial Day and UK May Bank Holiday. Markets remain cautious as details of the potential agreement remain unclear.