Select Language

Iran wants to de-escalate hostilities with Israel - WSJ

Breaking news

Iran wants to de-escalate hostilities with Israel - WSJ

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.06.16 23:04
Iran wants to de-escalate hostilities with Israel - WSJ

update 2025.06.16 23:04

The Wall Street Journal reported on Monday that Iran seeks talks with the United States (USD) and Israel and sends messages via Arab intermediaries to end hostilities, per Reuters.

According to the report, Iran signals that it wants to de-escalate hostilities with Iran and privately says that it will resume talks if the US stays out of the fight.

Market reaction

This headline seems to be helping the market mood improve. At the time of press, the S&P 500 was up more than 1%. Meanwhile, the US Dollar Index was last seen losing 0.4% at 97.75. Additionally, crude oil prices extend the decline, with the barrel of West Texas Intermediate losing more than 6% on the day near $68.

Risk sentiment FAQs

In the world of financial jargon the two widely used terms "risk-on" and "risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a "risk-on" market, investors are optimistic about the future and more willing to buy risky assets. In a "risk-off" market investors start to 'play it safe' because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.

Typically, during periods of "risk-on", stock markets will rise, most commodities - except Gold - will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a "risk-off" market, Bonds go up - especially major government Bonds - Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.

The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are "risk-on". This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.

The major currencies that tend to rise during periods of "risk-off" are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world's reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them - even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.


Date

Created

 : 2025.06.16

Update

Last updated

 : 2025.06.16

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

WTI drifts lower to near $67.00 on rising Crude Stockpile in US, tariff uncertainty

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.15 during the early Asian trading hours on Thursday. The WTI price loses ground amid concerns over weakening demand following a surprise increase in US crude inventories. 
New
update2025.07.10 08:57

USD/CAD posts modest gain above 1.3650 on firmer US Dollar

The USD/CAD pair posts a modest gain around 1.3685 during the early Asian session on Thursday, bolstered by a firmer US Dollar (USD). Traders will closely monitor negotiations between the United States and its trading partners. The US weekly Initial Jobless Claims is due later on Thursday.  
New
update2025.07.10 08:23

GBP/USD muddles through another tariff-heavy day

GBP/USD spun a tight circle on Wednesday, trapped near the 1.3700 handle as traders await any kind of meaningful change to macroeconomic factors.
New
update2025.07.10 08:19

Silver consolidates near 20-day SMA following Fed minutes

Silver price registered losses of over 1% on Wednesday after the US Federal Reserve (Fed) unveiled its June meeting minutes, hinting that policymakers are eyeing just one interest rate cut, instead of the two priced in by investors. Although the Greenback was unchanged, the grey metal tumbled.
New
update2025.07.10 07:53

EUR/USD steady at 1.1715 after dovish FOMC minutes and tariff tensions

The EUR/USD finished Wednesday's session with decent gains of over 0.17% after the Federal Open Market Committee (FOMC) released its June monetary policy meeting minutes, which showed that some officials are eyeing at least one interest rate cut.
New
update2025.07.10 07:22

Gold rises as Fed minutes signal 2025 cuts, US yields retreat

Gold price registers decent gains on Wednesday as US Treasury yields recede, even though the Greenback trades solidly against its peers. Trade developments continued to dictate the market's direction, while the latest minutes indicate that officials are still considering a rate cut in 2025.
New
update2025.07.10 06:19

Canadian Dollar backslides further as risk aversion bolsters the Greenback further

The Canadian Dollar (CAD) shed further weight on Wednesday, falling to its lowest bids against the US Dollar (USD) in around two weeks, pushing the USD/CAD pair back up into the 1.3700 region.
New
update2025.07.10 05:17

Breaking: Bitcoin hits record highs near $112,000

BTCUSD reached a record high in levels just shy of the $112,000 mark following the closing bell on Wall Street on Wednesday.
New
update2025.07.10 05:00

Dow Jones Industrial Average tests higher amid choppy markets as tariff threats continue

The Dow Jones Industrial Average (DJIA) gained some ground on Wednesday, paring away some of the week's early losses, although equities remain down overall from Monday's opening bids.
New
update2025.07.10 04:46

AUD/USD firms as traders digest latest tariff headlines and Fed Minutes

The Australian Dollar (AUD) is trading in a well-defined range against its US Dollar (USD) counterpart on Wednesday, as markets digest the latest Fed Minutes and fresh tariff-related headlines.
New
update2025.07.10 04:19

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel