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On August 21, the Iranian Foreign Ministry issued a statement on August 20 strongly condemning the new economic and trade sanctions imposed by the United States on Iran, stating that Iran will use "all tools and capabilities" to safeguard its national interests and the legitimate rights of the Iranian people. The statement said that the US announcement of large-scale economic and trade sanctions against Iran violates the basic human rights of Iranian citizens and is a manifestation of "economic terrorism" and "crimes against humanity"; it violates the principle of respecting national sovereignty and tramples on basic norms of international law. The statement said that these sanctions were implemented after the US and Israels war against Iran failed to achieve its objectives and are intended to force the Iranian people to submit. This move cannot shake the Iranian peoples determination to safeguard their national independence, dignity, and sovereignty. The statement believes that sanctions and economic pressure are "the other side of the coin of war and military aggression." The statement said that the US announcement of new sanctions is a continuation of a "tested and failed" policy, and repeating this policy will only lead to repeating past mistakes. Iran will rely on its own capabilities and its decades of experience in dealing with US pressure policies, using "all tools and capabilities" to safeguard its national interests and the legitimate rights of the Iranian people.On August 21, U.S. Treasury Secretary Matt Bessenter stated on the 20th that the Trump administration would increase economic pressure on Iran and threatened to implement "unprecedented economic isolation" measures against the country. In an interview with NBC News that day, Bessenter said, "This will be the largest and most coordinated economic isolation in history." He indicated that a press conference on the 24th would detail the specific actions. Bessenter also addressed all U.S. allies, saying, "We are going to overthrow this regime," and warned that they must either stand with the United States or oppose it. Bessenter claimed that the Trump administrations plan to severely damage the Iranian economy might eliminate the need for a large-scale military operation against Iran.August 21 - The China Earthquake Networks Center automatically determined that an earthquake of approximately magnitude 6.5 occurred near Peru (14.68°S, 73.62°W) at 2:00 AM on August 21. The final result is subject to the official rapid report.On August 21, Qatari Prime Minister and Foreign Minister Al Thani stated at a joint press conference with the Egyptian Foreign Minister that Qatar will continue to coordinate and cooperate with Egypt to "push for a final and sustainable agreement on the Iranian issue to end the war and military escalation." The Qatari Foreign Ministry stated that diplomats from both countries agreed that "the region has been in a difficult situation since the outbreak of the US-Iran war, which has had extremely serious negative impacts on the entire region." Qatars top diplomat emphasized the need to ensure freedom, safety, and guarantees of navigation, both in the Strait of Hormuz and the Bab el-Mandeb Strait. Al Thani stated that it is necessary to ensure that "international shipping is not hijacked by any party, nor should it be used as a tool for political blackmail," while condemning all actions that obstruct international shipping activities.On August 21, local time, the leaders of France, Germany, Italy, Norway, the Netherlands, and the United Kingdom issued a joint statement on August 20, declaring the Israeli governments decision to issue a construction tender for the "E1" settlement project in the West Bank "unacceptable." They urged Israel to immediately withdraw the project and cease expanding settlements in the West Bank. The statement said the "E1" settlement project would further divide the West Bank, undermine the continuity of Palestinian territory, and damage the prospects of the "two-state solution." The statement reiterated that Israeli settlements in the West Bank violate international law. The six leaders also called on companies not to participate in the bidding for the project and warned them to fully consider the potential legal and reputational risks, including the risk of becoming complicit in serious violations of international law. The statement indicated that the six countries will continue to work towards a comprehensive, just, and lasting peace based on the "two-state solution."

Despite caution, EUR/USD continues bids above 1.0250

Daniel Rogers

Aug 15, 2022 14:55

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After the US sent a delegation to Taiwan over the weekend, despite House Speaker Nancy Pelosi's contentious visit to the disputed island, which enraged Beijing, investors sought protection in government bonds and the dollar in the face of rising US-China threats.

 

Rates are also heavily influenced by the likelihood that the Fed will raise interest rates by 50 basis points (bps) in September as a result of easing US inflation pressures, with all eyes on the FOMC minutes due out on Wednesday for new information on the direction the world's most potent central bank will take its policy.

 

Despite a decline in rates and a sluggish demand for riskier assets in early Asian trades, the US dollar is holding up well. The US dollar index is trading at 105.61, unchanged from its previous close of 105.88 on Friday. Despite Wall Street's stellar performance, a substantial dollar increase was caused by stronger US Michigan Consumer Sentiment data and a dimming US inflation forecast.

 

As the European energy crisis gets worse, the gains in the common currency on the EUR side of the equation are likely to remain small. Germany is already suffering the most as a result of a decrease in Russian gas exports, which is wreaking havoc on the old continent. The Rhine's ebbing waters, which make transport along the river more challenging, could cause a recession in Germany.

 

By the end of the week, the reference level was predicted to drop below 40 centimeters in Kaub, a notorious shipping bottleneck where the Rhine flows shallow and narrow. One of the most significant goods shipped on the waterway is coal.

 

On both sides of the Atlantic, Monday's economic calendar features few noteworthy data releases. As a result, the main currency pair will continue to be influenced by the current market sentiment and dollar price action.