Fading hopes for a US-Iran deal drive cautious trading, lifting the dollar and pushing USD/JPY toward intervention-risk levels near 160.
Markets turned cautious as US-Iran negotiations showed little progress, dimming hopes for an imminent agreement. Conflicting headlines from both sides have stalled talks, despite both nations acknowledging the key issues at hand. The dollar recovered weekly losses, reflecting a shift toward safer assets amid the uncertainty.
With no major FX option expiries today, geopolitical risks dominate sentiment. USD/JPY continued its ascent, nearing the 160 level that previously triggered Japanese intervention. Traders remain on alert for potential official action as the pair tests resistance.
Risk-sensitive currencies followed broader sentiment, moving in lockstep with fading deal optimism. The lack of economic catalysts leaves markets vulnerable to further headline-driven volatility as the week closes.