G7 statement says Iran can never have a nuclear weapon - AFP

Source Fxstreet

G7 leaders attending a summit in Canada issue a joint statement calling for “de-escalation” on Iran. The G7 statement said that members have been consistently clear that Iran can never have a nuclear weapon.

Key quotes

We have been consistently clear that Iran can never have a nuclear weapon.
Urges that resolution of the crisis can lead to broader de-escalation of hostilities in the region.
Reaffirms that Israel has a right to defend itself.
We reiterate our support for the security of Israel.
Will remain vigilant on the implications for international energy markets and stand ready to coordinate.

Market reaction

At the time of writing, the USD/JPY pair is trading 0.10% higher on the day at 144.88.

Risk sentiment FAQs

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.

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.

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.

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.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Silver Price Forecast: XAG/USD has a strong support at $40.50Silver (XAG/USD) has reversed losses after bouncing at $40.50 earlier on Monday, with price action returning to levels right above $41.00.
Author  FXStreet
Yesterday 08: 22
Silver (XAG/USD) has reversed losses after bouncing at $40.50 earlier on Monday, with price action returning to levels right above $41.00.
placeholder
US Dollar Index Price Forecast: 100-day SMA remains a key barrierThe US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% lower around 97.60 during the European trading session on Monday.
Author  FXStreet
Yesterday 09: 20
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% lower around 97.60 during the European trading session on Monday.
placeholder
3 Red Flags for XRP in September That Could Derail a 2025 Price RallyDespite many positive predictions for XRP’s price in 2025, several on-chain data points reveal a different picture.
Author  Beincrypto
Yesterday 09: 27
Despite many positive predictions for XRP’s price in 2025, several on-chain data points reveal a different picture.
placeholder
Ethereum Price Forecast: BitMine's ETH stash surpasses $9 billion amid ETF outflow pressureEthereum (ETH) trades around $4,300 on Monday following mixed sentiment from corporate treasuries and investors in ETH exchange-traded funds (ETFs).
Author  FXStreet
14 hours ago
Ethereum (ETH) trades around $4,300 on Monday following mixed sentiment from corporate treasuries and investors in ETH exchange-traded funds (ETFs).
placeholder
U.S. August CPI Preview: Persistent Rise in Inflation, What Impact on Rate Cuts? And on US Stocks?On Thursday, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI.
Author  TradingKey
7 hours ago
On Thursday, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI.
goTop
quote