“We don’t need a deal with Iran”, says US President Donald Trump on Truth Social

Dismissing the need for a deal with Iran, US President Donald Trump used one of several Truth Social posts on Thursday to set out his position. In that post, he also said he had directed Vice President JD Vance to concentrate on what he described as widespread crime and corruption across Democratic-led cities and states.

Before Trump made the remarks, The Wall Street Journal had reported that Vance was considering in-person talks with senior Iranian security official Mohsen Rezaei to try to bring the war to an end. Discussions remained at a preliminary stage, with no date fixed.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

What Did Trump Say on Truth Social?

I have asked Vice President Vance to focus his complete and total attention on the Massive Corruption and Crime taking place in Democrat run Cities and States throughout the U.S. The Blue States, such as Minnesota, California, Illinois, and many more, are all poorly run, corrupt disasters. Billions of Dollars is being stolen each and every month. Our Budget could be quickly BALANCED with the correction of this large scale criminal activity. CORRUPTION is in the Democrat Leadership’s blood! We don’t need a deal with Iran. Those days have long since passed. We’ve got their money, Hundreds of Billions of Dollars, and we’ve got their Strait! Thank you for your attention to this matter. President DJT

Following Trump’s comments, West Texas Intermediate (WTI) recovered from its earlier decline to trade around $86.40 a barrel, up more than 1% on the day.

Understanding risk sentiment: FAQs

How do “risk-on” and “risk-off” describe financial market sentiment?

Investors’ willingness to take on risk over a given period is commonly described in financial markets using the terms “risk-on” and “risk-off”. Optimism about the outlook characterises a “risk-on” market, encouraging investors to purchase riskier assets. When markets turn “risk-off”, concerns about the future prompt investors to favour safety. They then choose lower-risk assets offering greater certainty of a return, even if that return is relatively modest.

Which assets help investors gauge shifts in risk sentiment?

A positive growth outlook generally supports equities and most commodities, apart from gold, during “risk-on” periods. Stronger demand also lifts the currencies of major commodity-exporting nations, while cryptocurrencies advance. By contrast, “risk-off” conditions tend to favour bonds, particularly those issued by major governments, alongside gold. Safe-haven currencies, including the Japanese yen, Swiss franc and US dollar, also benefit.

Which currencies tend to gain in a “risk-on” market?

In “risk-on” conditions, currencies that typically appreciate include the Australian dollar (AUD), Canadian dollar (CAD) and New Zealand dollar (NZD), along with minor currencies such as the rouble (RUB) and South African rand (ZAR). Growth in their economies depends heavily on commodity exports. As investors anticipate stronger economic activity and, consequently, greater future demand for raw materials, commodity prices tend to increase during these periods, supporting those currencies.

Why do certain currencies gain when markets turn “risk-off”?

During “risk-off” periods, the US dollar (USD), Japanese yen (JPY) and Swiss franc (CHF) are the major currencies that generally strengthen. The dollar benefits from its role as the world’s reserve currency and from crisis-driven purchases of US government debt. Investors regard that debt as safe because the world’s largest economy is considered unlikely to default. Demand for Japanese government bonds supports the yen: a large share of these bonds is held by domestic investors who are unlikely to sell heavily, even during a crisis. For the Swiss franc, support comes from Switzerland’s strict banking laws, which provide investors with stronger capital protection.