The agreement includes reopening the Strait of Hormuz and clearing mines, while the two sides will continue negotiations on nuclear weapons at a later time.
If US President Donald Trump signs the agreement today, the US dollar index may face further pressure due to easing inflation fears and easing expectations for a Fed rate hike. The focus now turns to the impact on inflation following the recent sector-wide rally. However, the recent slight increase in personal consumption before price pressures may partially offset the impact of higher input prices in the coming months.
Technically, the US Dollar Index remained flat after a significant decline, briefly testing support at 98.95 and staying between the EMAs with a death cross in the 1-hour time frame indicating bearish potential, while the 4-hour time frame indicates range-bound potential.
If the US Dollar Index falls below 98.95, the index may fall towards the next support level at 98.80. Conversely, stability above 98.95 may lead to a mean bounce towards immediate resistance at 99.10.
Written by Van Ha Trinh – Financial Markets Strategist at Exness
