The USD is modestly higher to start the US session reversing some of the declines from the moves during the holiday session yesterday.
Against the 3 major currencies – the EUR, JPY and GBP – the gains are moderate with a rise of 0.08% vs the EUR, 0.19% vs the JPY and 0.24% vs the GBP
The greenback is the strongest vs the NZD with a gain of 0.51%. Today, US bond markets are open after the hiatus from trading yesterday due to the Memorial Day holiday, and the yields are lower but the USD is not reacting with a move lower with perhaps some counter progress toward peace the cause of the apprehension. More specifically, the Iran-US negotiations remained alive, but Iran continued to send mixed signals that are making any peace agreement difficult (and the US may also be playing it’s part).
While negotiators are still discussing a temporary framework deal centered on a 60-day ceasefire, reopening the Strait of Hormuz, and possible sanctions relief, Iran simultaneously continued actions and demands that are undermining confidence in the talks. The biggest issue remains Iran’s refusal to fully give ground on its enriched uranium stockpile. Iran continues to insist that enriched uranium remain under Iranian control, while the US is demanding either destruction of the material or strict international oversight.