US Senior Official: Iran deal secures Hormuz reopening, nuclear material
A senior administration official said on Friday that the Iran deal will guarantee long-term peace in the region. The agreement would achieve core US objectives and reopen the Strait of Hormuz. The official said that the US would get enriched nuclear material and include an inspection regime.
Key highlights:
SENIOR ADMINISTRATION OFFICIAL: IRAN DEAL ACCOMPLISHES CORE U.S. OBJECTIVES
IRAN DEAL REOPENS STRAIT OF HORMUZ - OFFICIAL
U.S. TO GET ENRICHED MATERIAL UNDER IRAN DEAL
IRAN DEAL GUARANTEES LONG-TERM PEACE IN REGION
IRAN DEAL INCLUDES INSPECTION REGIME
IF IRAN COMPLIES WILL BE REWARDED ECONOMICALLY
BENEFITS FOR IRAN ACCRUE IF THEY ACTUALLY DELIVER
U.S. EXPECTS TO SIGN AGREEMENT OVER NEXT FEW DAYS
DRAFT AGREEMENT ALSO LIFTS U.S. BLOCKADE AND LEADS TO DISMANTLEMENT OF IRAN NUCLEAR PROGRAM
IRANIANS DON'T GET ANYTHING UPON SIGNING AGREEMENT
NOT QUITE AT FINISH LINE YET BUT VERY CLOSE
IRAN DEAL IS SPECIFIC ABOUT OPENING STRAIT AND LIFTING OF BLOCKADE AND MOVING OF ENRICHED MATERIAL
THE MORE IRANIANS PERFORM, THE MORE THEY CAN GET
THERE WILL BE SIGNIFICANT SANCTIONS RELIEF BASED ON HOW IRAN PERFORMS
U.S. HAS SEEN SUBSTANTIAL PROGRESS IN TEXT OF AGREEMENT
AGREEMENT REACHED ON SPECIFICITY OVER DESTRUCTION AND REMOVAL OF ENRICHED MATERIAL
REGIONAL PEACE AGREEMENT IS BROAD
CONFIDENT ISRAELIS WILL GET ON BOARD
SOME IRANIANS DON'T LOVE THIS DEAL
WE THINK THAT DISSENT IS QUITE MINIMAL
THERE'S JUST A LOT OF MISTRUST
WHEN ISRAEL SEES FULL TERMS OF DEAL THEY WILL BE COMFORTABLE WITH THAT
DEAL IS A FIRST AND IMPORTANT STEP TOWARD ENSURING IRANIANS DO NOT GET A NUCLEAR WEAPON
WE HAVE A TEXT IN PLACE THAT IRAN AND U.S. BOTH LIKE
IRAN IS COMMITTING TO NEVER DEVELOPING A NUCLEAR WEAPON
U.S. WILL HAVE TO FIGURE OUT HOW TO ENFORCE THAT
WE ENVISION 60-DAY TECHNICAL NEGOTIATION
IRAN'S SUPREME LEADER IS REPORTEDLY COMFORTABLE WITH WHERE WE ARE IN NEGOTIATIONS
EUROPE HAS BEEN DISCUSSED AS SITE FOR SIGNING BUT NO DECISION YET
U.S., IRAN SET UP A PROCESS TO BUILD TRUST, BRING AGREEMENT TO A CLOSE
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.
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
