US-Iran nuclear talks near breakthrough on 15-Year freeze

US-Iran nuclear talks near breakthrough on 15-Year freeze – NYT

1. A lengthy suspension of uranium enrichment.

The US demanded that Iran agree not to conduct uranium enrichment for 20 years, but Iran offered 10 years. Americans believe that Iran would settle for 15 years.

2. Iran’s current stockpile of enriched uranium is diluted, or “downblended.”

The US, alongside the International Energy Agency (IEA), would dilute or “downblend” Iran’s stockpile of enriched uranium. Iranian officials said that the US would serve only as observer.

3. Iran dismantles its nuclear sites.

Washington demanded that Tehran dismantle all three of its major nuclear sites in Natanz, Fordo and Isfahan. The article mentioned that Iran would dismantle just two, but this could be problematic after the Obama-era agreement, in which Iran revived the Fordo installation to produce near-bomb-grade fuel. Regarding this, Iran’s response is unclear.

4. Iran agrees to “snap” inspections

Washington wants international inspectors to conduct “snap” inspections, anytime and anyplace inside Iran. However, it’s not clear if Tehran would agree, due to many of the suspected sites being inside the Iranian Revolutionary Guards Corps military bases, where inspectors have been banned from access.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.12%	-0.33%	0.10%	-0.01%	0.20%	-0.21%	-0.04%
EUR	0.12%		-0.19%	0.24%	0.11%	0.38%	-0.06%	0.11%
GBP	0.33%	0.19%		0.43%	0.32%	0.53%	0.14%	0.30%
JPY	-0.10%	-0.24%	-0.43%		-0.11%	0.11%	-0.31%	-0.13%
CAD	0.00%	-0.11%	-0.32%	0.11%		0.22%	-0.18%	-0.02%
AUD	-0.20%	-0.38%	-0.53%	-0.11%	-0.22%		-0.40%	-0.24%
NZD	0.21%	0.06%	-0.14%	0.31%	0.18%	0.40%		0.16%
CHF	0.04%	-0.11%	-0.30%	0.13%	0.02%	0.24%	-0.16%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

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.