Precious Metals Respond to US-Iran Deal Speculation

Gold and silver prices reacted to shifting headlines regarding a potential US-Iran nuclear agreement, which introduced volatility into the market. The metals initially found support amid geopolitical uncertainty, with gold trading flat below $4,550 and silver consolidating. A subsequent recovery in gold prices was noted following reports that a finalized draft agreement was reached, a development that also appeared to undermine the US Dollar.

US Dollar Steadies on Strong Data and Cautious Fed Outlook

The US Dollar was supported by stronger-than-expected Manufacturing PMI data, which reinforced market expectations that the Federal Reserve may maintain a cautious approach to interest rate adjustments. A Fed official commented that current policy is well-positioned, while other news highlighted that Kevin Warsh was set to be sworn in to lead the central bank. This combination of resilient economic data and a steady policy outlook contributed to the dollar's stability.

Global Currencies Navigate Domestic Data and Intervention Concerns

Major global currencies navigated a mix of domestic economic reports and broader market themes, with the Euro and Pound Sterling pressured by weak business activity data. The Japanese Yen traded in a narrow range as markets digested slowing domestic inflation data and remained wary of potential intervention by Japanese authorities. Elsewhere, the Swiss National Bank affirmed its "elevated willingness" to intervene in foreign exchange markets if necessary.