New USA-Iran tensions are around the corner. U.S. President warned Iranian President on Sunday not to threaten the United States or suffer the consequences.
The ALL-CAPS tweet came hours after Rouhani told Trump that hostile policies toward Tehran could lead to “the mother of all wars.”
To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!
— Donald J. Trump (@realDonaldTrump) July 23, 2018
The situation has been escalated as the Trump administration has launched an offensive of speeches and online communications. Iran has faced increased U.S. pressure following Trump’s decision on pulling the States out of the “defective” international 2015 Iran nuclear Deal (JCPOA).
Washington initially planned to shut Iran out of global oil markets. However, United States has somewhat eased its stance by granting sanction waivers to some allies that particularly rely on Iranian supplies.
EU Commission President to visit Washington for trade talks
Jean-Claude Juncker will visit the United States for talks with U.S. President without a specific trade offer, the Commission said on Monday.
The talks will focus on trade tensions after Trump decided to impose 10% and 25% tariff on imported steel and aluminium, respectively, from EU. Τrump has also threatened to impose a 20% tariff on all imports of EU-assembled cars.
FOREX MARKETS
The dollar edged down 0.1%, moving further away from the one-year high it reached in the previous week session. Last week, the greenback rallied for a second, consecutive, week. However, Morgan Stanley experts predicted a weaker USD in coming weeks.
The Yen was up against the US dollar, the euro (0.5%) and the sterling near 2-week highs. Reports that BOJ may downsize its monetary stimulus and Trump’s recent comments on strong dollar boosted the Japanese currency.
The Euro dropped against the sterling and the Yen.
The Sterling dipped to a 3-week low against the Yen and the US dollar amid Brexit concerns. The pound is set for more volatility as a “hard” Brexit is more likely to take place. However, the Sterl (GBP) rose against the common currency.
Oil prices rose amid concerns over supply following USA-Iran threats.
Sources: Reuters, CNN money, the guardian
PLEASE NOTE The information above is not investment advice.