Markets stay rangebound as investors await fresh US-Iran peace updates

The euro and British pound consolidated recent gains

The euro and pound reached new multi-week highs against the dollar early this week, driven by a selloff of the dollar. However, after hitting these highs, both currency pairs began to trade sideways, with the US dollar showing a modest recovery from its earlier losses. Meanwhile, the overall outlook for the dollar remains bearish. The DXY daily chart continues to indicate a downward bias, and it is likely that we will see further declines, as the chart suggests continued downward pressure before a potential rebound.

Gold trades flat after early gains

Gold extended its recovery to a new monthly high of $4,870 on Wednesday before giving back some gains. Since then, gold has traded flat amid thin volumes and a lack of major economic data. With no significant economic releases expected in the North American session, market activity is likely to remain subdued as investors await Fed policymakers’ speeches and geopolitical updates.

Overall, this week was marked by a favorable environment for risk assets, supported by hopes of a US-Iran ceasefire extension after US President Donald Trump expressed confidence that the conflict could end soon, with talks potentially resuming over the weekend.

Looking ahead, investors will remain focused on geopolitical developments on Friday amid a light economic calendar. Additionally, attention will turn to numerous Fed speakers scheduled throughout the day, whose remarks on potential interest rate cuts and the broader economic outlook could significantly influence market movements.

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