August 9, 2020

Iran Nuclear Deal: seeking a safety net >14.05.2018 Highlights

Iran Nuclear Deal: seeking for a safety net

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UK, France, Germany, Russia have a long way to save Iran Nuclear Deal

A long and difficult way needs to be run by the “P5+1 minus 1” (the States) in order to preserve the Iran nuclear Deal (JCPOA) following USA pullout.

French foreign minister stated that France intends to remain within the Iran nuclear accord. France still thinks that is an effective way to prevent Iran from developing a nuclear weapon.

UK Prime Minister reassured Tehran that European partners will stay within the pact, while they both agreed on the importance of the continued dialogue between the two countries.

Germany has concerns over the difficulty of implementing the Iran accord after the imposition of sanctions by the USA regarding the protection of European firms doing business with Iran.

Russia expressed its support and intention to talk with Iran to save the JCPOA.

China-USA trade talksChina says that it will cooperate with USA in order to have a positive outcome after the high-level discussions in Washington, later this week, in order to smooth the risk of a trade war.

US Embassy’s relocation to Jerusalem from Tel Aviv was accompanied with festivities, while most diplomatic missions were conspicuous by their absence, sending clearly the message of respect of the international consensus on Jerusalem. At the same time, Israeli forces kill 28 in Gaza as thousands of Palestinians protest on Gaza border for the relocation.

START TRADING

MARKETS in the era following the US pullout from Iran deal

US Dollar’s rally paused while US yields sinking. The greenback dropped against a basket of six major currencies.

Euro is higher, almost at $1.20, while it awaits Italy majority government. The common currency extended gains and got back from last week lows, when it even hit a 4-1/2-month low. The same applies for Australian Dollar, which recovers following an 11-month low.

The New Zealand Dollar – the kiwi – remained mostly unchanged after the release of lowered central bank growth and inflation forecasts. The Reserve Bank of New Zealand kept interest rates unchanged.

Sterling rose by almost 0.4% supported by a weaker US dollar post last week BoE decision to hold interest rates unchanged.

Gold struggles although US dollar backs away from recent highs and US Treasury yields relax.

Oil prices remain steady following last week trader’s response to the announced US sanctions against Iran which rose oil prices.

Sources: Reuters, Euronews, CNN Politics

PLEASE NOTE The information above is not investment advice.