Iran’s Baghaei: Chances of US-Iran diplomacy in next few days exits
Iran's Foreign Ministry spokesperson Esmaeil Baghaei says basis of diplomacy with the United States (US) is Tehran’s seven steps proposal, and the chances of its implementation over next few days exists.
During the Asian trading session on Monday, the EUR/USD currency pair experienced a slight increase, although it maintained a relatively modest upward movement just above 1.1150. This positive shift in the pair was attributed to a combination of factors, including the European Central Bank's (ECB) firm stance on potential December interest rate hikes and growing inflation concerns driven by surging energy prices.
Additionally, positive developments in Middle East diplomacy appeared to have a dampening effect on the US Dollar (USD), providing some support for the EUR/USD pair. In this context, Iranian negotiators engaged in their third consecutive day of talks with Qatari mediators on Sunday to negotiate a resolution to the ongoing conflict between the US and Iran.
Iran also proposed a 48-hour (two-day) plan to reopen the Strait of Hormuz, contingent on the US meeting certain conditions. US President Donald Trump expressed optimism about the talks with Tehran but cautioned that further military action could be considered after the November 3 midterm elections. Moreover, Iran's Supreme Leader, Mojtaba Khamenei, ordered his top military commanders to prepare for potential renewed confrontations with the US and Israel, thereby expanding Tehran's retaliation options.
Apart from these geopolitical developments, ongoing Ukrainian attacks on Russian oil refineries continued to fuel geopolitical risk premiums, which, in conjunction with anticipated US Federal Reserve (Fed) rate hikes, offered further support to the USD and potentially limited the EUR/USD pair's upward movement. According to the CME Group's FedWatch Tool, traders now estimate a 75% probability of a December rate hike by the US central bank.
This expectation was bolstered by recent US macroeconomic data indicating a resilient economy and persistent inflationary pressures. Furthermore, mounting concerns over France's deepening debt levels and political uncertainty ahead of the upcoming election were also considered to have a modest impact on limiting the EUR/USD pair's gains.
Traders are now eagerly awaiting the final Manufacturing PMI releases, particularly the US ISM Manufacturing PMI, although the primary focus remains on the upcoming US Nonfarm Payrolls (NFP) report on Friday. Notably, the EUR/USD pair is currently positioned below the 50-day Simple Moving Average (SMA) at 1.1379 and remains constrained by a confluence of key support levels, including the 23.6% Fibonacci retracement at 1.1247 and the 38.2% retracement at 1.1336.
The pair faces resistance at the 50.0% retracement level at 1.1408, with additional supply zones identified at 1.1480 (61.8%), 1.1582 (78.6%), and the cycle high near 1.1712. On the downside, the next significant support level is observed at the structural anchor around 1.1104, where a bullish reversal could potentially halt the prevailing bearish trend.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
