Monday open indicative forex prices, 11 May 2026. USD bids.
At a Glance
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.
Full Analysis
What the desk is arguing
The desk frames this as a critical moment for the USD, bolstered by geopolitical tensions that traditionally favor safe-haven flows. The rejection of Iran's proposals by President Trump, described as 'TOTALLY UNACCEPTABLE', signals a potential escalation in conflict, which could further support the USD as traders seek refuge in safer assets.
Supporting this view, the USD has seen a slight increase in early trading, reflecting a market that is pricing in these heightened risks. The recent uptick in oil prices, which often correlate with USD movements due to the dollar's role in global oil trade, adds another layer of complexity to the current market dynamics.
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)
This view aligns with jpmorgan, which sees the USD strengthening amid geopolitical tensions, while bofa presents a more cautious outlook, suggesting a lower target. The desk's call sits at the upper bound of the consensus range, indicating a more bullish stance on the USD compared to the broader market.
How other firms see it
Firms like jpmorgan and citi are aligned with the desk's bullish outlook on the USD, citing similar geopolitical concerns and their impact on safe-haven demand. Conversely, bofa and goldman express a more bearish sentiment, focusing on potential economic recovery and its implications for the USD.
Traders should also monitor the EUR/USD trajectory, as it often reflects broader market sentiment towards the USD, particularly in light of the ECB's monetary policy stance and potential shifts in economic data.
What the calendar says
With no significant economic events scheduled in the immediate term, traders should remain focused on geopolitical developments, particularly regarding Iran, as these could serve as catalysts for volatility in the USD and related currency pairs.
From the original
Earlier: Iran said to table broad demands covering sanctions, war and security The prez says no: Trump says Iran's proposals are "TOTALLY UNACCEPTABLE" The USD is a touch higher in really early trade. Weekend oil trade is a touch higher. This article was written by Eamonn Sherida
Related speeches
4 itemsMonday open indicative forex prices, 04 May 2026
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.
Monday open indicative forex prices, 25 May 2026
Monday open levels, indicative FX prices, 18 May 2026
EUR/USD remains rangebound amid the prolonged US-Iran stalemate and widely expected hikes
The desk maintains a cautious outlook on EUR/USD, anticipating continued rangebound trading amid geopolitical tensions and central bank policy uncertainty. Per the full note [source], the US dollar has found some support as US-Iran negotiations stall, while the Fed's shift away from an easing bias is underscored by resilient economic data. With the market pricing in an 84% chance of a June rate hike from the ECB, the euro faces headwinds despite the potential for inflationary pressures to influence Fed policy. Upcoming US CPI data could serve as a catalyst for volatility in the pair.
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