Monday open indicative forex prices, 04 May 2026
At a Glance
The desk interprets the recent markdown of the USD as a response to geopolitical developments, particularly the tentative peace proposal involving Iran, which aims to reopen the Strait of Hormuz and end hostilities in the region. Per the full note source, this situation is fluid, with President Trump expressing skepticism about the adequacy of the proposal. The market's reaction suggests a cautious optimism, but the underlying risks remain significant, particularly given the U.S. naval blockade and ongoing tensions in Lebanon. As traders navigate these dynamics, the USD's position will be closely monitored against key levels and upcoming data releases.
Full Analysis
What the desk is arguing
The desk frames this as a critical juncture for the USD, influenced by geopolitical tensions and potential resolutions in the Middle East. The recent markdown reflects market sentiment that is cautiously optimistic about the peace proposal, which includes a one-month deadline for significant changes in the region.
Supporting this view, the USD's slight decline indicates that traders are pricing in a potential easing of tensions, although skepticism remains, particularly from U.S. political figures. This sentiment is underscored by the ongoing complexities of the situation, which could lead to volatility in currency markets.
Where it sits in our coverage
Our consensus target for the USD is 1.075, with a range between 1.04 and 1.12. Notable firm targets include: - jpmorgan: 1.10 (Mar26) - bofa: 1.04 (Mar26) - citi: 1.12 (Mar26)
This view aligns with jpmorgan, which sees a stronger USD in the near term, while bofa presents a more cautious outlook at the lower end of the spectrum. The desk's call is positioned towards the upper bound of the consensus range, reflecting a more optimistic outlook than some peers.
How other firms see it
Firms like jpmorgan and citi are aligned in their bullish outlook on the USD, anticipating a recovery as geopolitical risks potentially subside. In contrast, bofa holds a more bearish stance, reflecting concerns about sustained dollar strength amid ongoing uncertainties.
Traders should also keep an eye on related pairs such as EUR/USD, which may react to shifts in sentiment regarding the USD, as well as the implications from central bank policies that could influence market dynamics.
What the calendar says
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From the original
USD marked down a little. Weekend war news (in VERY brief), the two sides work towards an end: Iranpeace proposal, including a one-month deadline to reopen the Strait of Hormuz, end US naval blockade, end fighting in Iran and Lebanon Trump suggested it might not be enough I'll ha
Related speeches
4 itemsMonday open indicative forex prices, 11 May 2026. USD bids.
The desk interprets the recent geopolitical tensions surrounding Iran's demands and President Trump's firm rejection as a catalyst for a modest uptick in the USD. Per the full note from Eamonn Sheridan, the USD is showing slight strength in early trading, coinciding with a slight rise in weekend oil prices. This backdrop suggests a market increasingly sensitive to geopolitical risks, which could influence currency flows and positioning. With the USD currently trading higher, traders should remain vigilant for further developments in the Iran situation and their potential impact on oil prices and the broader FX landscape.
Monday open indicative forex prices, 25 May 2026
Monday open levels, indicative FX prices, 18 May 2026
Dollar eases slightly on the day as risk mood holds steadier
The dollar is experiencing a slight pullback as traders await developments in the US-Iran conflict, which is keeping market sentiment relatively stable. Per the full note from Justin Low at investinglive.com, the lack of new information has resulted in a cautious optimism among traders, with the dollar easing slightly while major currencies like the euro and pound gain modestly. This sentiment is reflected in the bond market, where persistent inflation concerns are limiting the dollar's decline. As traders assess the potential for a framework deal regarding the Strait of Hormuz, the dollar's movements remain muted, with EUR/USD hovering near 1.1760, indicating a balance between risk appetite and geopolitical caution.
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