As things stand, US-Iran headlines will continue to be the biggest driver of trading sentiment as we look to close out the week in the next two days. Nothing else really matters at this point.

So far, markets are turning more cautious again as hopes for a deal fade just a little bit. That especially since it was supposed to “imminent” from the weekend but now, we’re seeing conflicting headlines from both sides about what they look to be agreeing upon.

As mentioned before, both the US and Iran know what the puzzle pieces are to complete the picture. However, the main issue is trying to fit them all together and that seems to be the problem. Knowing what are the key sticking points and the potential solution to that is one thing, the only issue is who will be the one blinking first?

More on that:

As such, major currencies will also continue to move to the risk beat in the meantime. The dollar recovered losses on the week yesterday and is now in a decent spot again. If anything else, keep a watchful eye on USD/JPY as it continues its approach towards 160 and may prompt another round of intervention from Japan.

For more information on how to use this data, you may refer to this post here.