US Senior Official: Iran accord secures Hormuz reopening, nuclear material

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

What do the terms"risk-on" and "risk-off" mean when referring to sentiment in financial markets?

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.

What are the key assets to track to understand risk sentiment dynamics?

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.

Which currencies strengthen when sentiment is "risk-on"?

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.

Which currencies strengthen when sentiment is "risk-off"?

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.