The United States and Iran signed a memorandum of understanding to extend the ceasefire between the two sides. US President Donald Trump confirmed the agreement following the conclusion of the G7 summit held in France, after Tehran announced the completion of the signing between him and his Iranian counterpart.<\/p>\n\n\n\n
The memorandum, which consists of 14 provisions, entered into force immediately upon signing. It includes a clear commitment from Iran not to pursue nuclear weapons under any circumstances. It also outlines a plan to allocate approximately $300 billion for reconstruction and economic development in Iran, noting that the United States is not obligated to contribute to the funding of this plan.<\/p>\n\n\n\n
This agreement comes after four months of tension and conflict involving the United States and Israel with Iran, reflecting a notable shift toward de-escalation and recalibration of relations. The US administration described the agreement as \u201cperformance-based,\u201d meaning that Iran\u2019s benefits depend on its adherence to its commitments and implementation of the terms.<\/p>\n\n\n\n
Despite the importance of this step, the text of the memorandum leaves several questions unresolved, particularly regarding key issues that remain unsettled, leaving room for further interpretations and developments in the coming phase.<\/p>\n\n\n\n
The Federal Reserve May Continue Tightening<\/strong><\/p>\n\n\n\n The Fed decided to keep interest rates unchanged within the range of 3.5% to 3.75%, in line with market expectations. However, the changes in communication and forward guidance had a greater impact on financial markets.<\/p>\n\n\n\n The most prominent development was the significant reduction in the monetary policy statement, from 341 words to just 130 words, with the complete removal of forward guidance. This shift increased uncertainty, especially for interest-sensitive assets such as equities and bonds, as markets lost a key reference point.<\/p>\n\n\n\n The \u201cdot plot\u201d also reflected a more hawkish stance, with the projected terminal rate for 2026 rising to 3.8% from 3.4%, and nearly half of policymakers expecting a rate hike this year. Inflation projections were revised higher, with headline inflation expected at 3.6% and core inflation at 3.3%.<\/p>\n\n\n\n These developments are bearish for equities and high-risk assets, while supporting the US dollar and bond yields. At the same time, they are bullish for the dollar and fixed-income instruments, reinforcing expectations of higher returns and price stability in the long term.<\/p>\n\n\n\n US Dollar Strength Dominates<\/strong> Retail sales exceeded expectations, rising by 0.9% monthly, while core sales rose by 0.8%. Housing data also improved, with pending home sales increasing by 3.8%. These factors reinforced confidence in the US economy.<\/p>\n\n\n\n However, falling oil prices and improved risk appetite limited the dollar\u2019s gains. Overall, the currency moved within a balanced range between monetary support and external pressures.<\/p>\n\n\n\n Euro Declines Under Dollar Pressure<\/strong> The euro was initially supported by improved risk sentiment and falling oil prices, alongside stable economic data and positive sentiment indicators from Germany. Hawkish remarks from ECB officials also provided support.<\/p>\n\n\n\n However, renewed US dollar strength outweighed these factors, alongside declining German bond yields and limited expectations for ECB rate hikes.<\/p>\n\n\n\n Gold Struggles Amid Dollar Strength<\/strong> Central bank demand, particularly from China, also supported prices. However, gold later declined by more than 2% as the dollar strengthened following hawkish Fed signals and strong US economic data.<\/p>\n\n\n\n Improved risk appetite and declining ETF holdings further pressured gold, leading to an overall weekly loss.<\/p>\n\n\n\n Oil Hit by Peace Developments<\/strong><\/p>\n\n\n\n Oil prices fell by around 10% over the week, mainly due to the US-Iran agreement and the gradual reopening of the Strait of Hormuz.<\/p>\n\n\n\n The Fed\u2019s hawkish tone and resulting dollar strength also weighed on oil, as commodities priced in dollars tend to weaken when the currency rises.<\/p>\n\n\n\n Cryptocurrencies Under Pressure from AI Sector<\/strong> The cryptocurrency declined by around 7% after failing to break $67,200, triggering $330 million in leveraged liquidations. Rising US yields, a stronger dollar, and reduced appetite for leveraged positions further pressured prices.<\/p>\n\n\n\n While improved risk sentiment and inflows into Bitcoin ETFs provided some support, overall conditions remained negative.<\/p>\n\n\n\n Corporate Performance<\/strong> Outlook for the Week Ahead<\/strong> The inflation reading is expected to shape market direction, as higher-than-expected data may reinforce tightening expectations, while softer readings could boost risk appetite.<\/p>\n\n\n\n Markets will also closely watch earnings from Micron Technology, a key indicator of demand in the AI sector, alongside results from companies such as FedEx and Carnival, which will offer insights into consumer strength and global economic activity.<\/p>\n\n\n\n Overall, heightened volatility is expected as markets react to the interaction between inflation, monetary policy, and corporate earnings, which will determine near-term direction.<\/p>\n","protected":false},"excerpt":{"rendered":" It was a week full of significant events that influenced the movement of asset prices in global financial markets, including political developments such as the US-Iran peace agreement, alongside other factors related to monetary policy and additional market drivers, which we review in this weekly summary. Peace in the Middle EastThe United States and Iran …<\/p>\n","protected":false},"author":13,"featured_media":128714,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,40,6827,49,37,36,6828],"tags":[6877,6885],"class_list":["post-128710","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-cryptocurrencies","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates","category-weekly-economic-reports","tag-dollar","tag-fed"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=128710"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128710\/revisions"}],"predecessor-version":[{"id":128715,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128710\/revisions\/128715"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/128714"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=128710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=128710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=128710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/noortrends.ae\/en\/wp-content\/uploads\/2026\/06\/Week-rates-fed.webp\")
<\/figure>\n\n\n\n
The latest Federal Reserve meeting marked a notable shift in the contours of US monetary policy, not in the decision itself, but in the signals and messaging accompanying it, particularly under the leadership of Kevin Warsh as Chair of the Federal Open Market Committee.<\/p>\n\n\n\n
The US dollar dominated global markets this week amid a repricing of monetary policy expectations toward further tightening. The dollar index rose to its highest level in 13 months, supported by strong economic data, including falling jobless claims and robust business activity indicators.<\/p>\n\n\n\n
The EUR\/USD pair recorded mixed movements with a slight downward bias. After rising 0.4% early in the week and gaining marginally thereafter, it later declined by around 0.3%.<\/p>\n\n\n\n
Gold prices experienced sharp volatility, rising over 3.6% early in the week due to a weaker dollar, falling bond yields, and declining oil prices, which reduced inflation expectations.<\/p>\n\n\n\n![\"\"](\"https:\/\/noortrends.ae\/en\/wp-content\/uploads\/2026\/06\/OIL-week-TE-1024x571.png\")
<\/figure>\n\n\n\n
Oil was hard hit by the US – Iran peace deal – Source: tradingeconomics<\/strong><\/p>\n\n\n\n
Bitcoin faced weekly losses amid a decoupling from technology stocks and shifting investment flows toward the artificial intelligence sector.<\/p>\n\n\n\n
SpaceX shares performed strongly, driven by investor confidence, though high valuations pose risks of volatility.
eBay shares delivered solid medium- and long-term gains, despite a pullback from recent highs.
Coinbase shares underperformed the financial sector, reflecting volatility in digital assets.
Broadcom shares maintained positive momentum, supported by growth in artificial intelligence and strong forward expectations.<\/p>\n\n\n\n![\"\"](\"https:\/\/noortrends.ae\/en\/wp-content\/uploads\/2026\/06\/PCE-June.webp\")
<\/figure>\n\n\n\n
Global markets are entering a critical period, with focus on US inflation data, particularly the Personal Consumption Expenditures index, the Federal Reserve\u2019s preferred gauge.<\/p>\n\n\n\n