An interview with ABC News shows that US President Donald Trump said he can trust the Iranians. Trump added that the talks would take place only in Islamabad and would resume over the weekend.
He added that he believed there were not many significant differences, while stating that the US would cooperate with Tehran to remove its enriched uranium. Trump added that Iran would not receive money for the exchange, commenting that reports of a $20 billion payment were “fake news.”
Highlights:
Steve [Witkoff] and Jared [Kushner] will be coming out and maybe JD [Vance]. I haven’t talked to JD about this yet
Only Islamabad. I am not interested in going to countries that have not helped.
They want to make a deal. They want to make some money, you know. … They don’t make money while I’m blocked,
NATO called me and asked, “Is there anything we can do?” And I said, “Yes, stay away.”
Frequently asked questions on risk sentiment
In the world of financial jargon, two commonly used terms, “risk enhancement” and “risk mitigation,” refer to the level of risk that investors are willing to endure over a given period of time. In a “risky” market, investors are bullish about the future and are more willing to purchase risky assets. In a “risk-free” market, investors begin to “play it safe” because they are concerned about the future, and therefore buy less risky assets that are more likely to produce a return, even if it is relatively modest.
Typically, during periods of increased risk, equity markets rise, and most commodities – except gold – also escalate in value as they benefit from positive growth prospects. The currencies of hefty goods exporting countries are strengthening due to increased demand, and cryptocurrencies are rising. In a risk-free market, bonds rise – 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), Canadian dollar (CAD), New Zealand dollar (NZD) and smaller currencies such as the ruble (RUB) and South African rand (ZAR) tend to rise in risk-off markets. This is because the economies of these currencies rely heavily on commodity exports for their growth, and commodity prices tend to rise during risky periods. This is because investors anticipate greater demand for raw materials in the future due to increased economic activity.
The main currencies that tend to rise during “risk-free” periods are the US dollar (USD), Japanese yen (JPY), and Swiss franc (CHF). The US dollar because it is the world’s reserve currency and also because in times of crisis, investors buy US government debt, which is seen as protected because the world’s largest economy is unlikely to collapse. Yen, from increased demand for Japanese government bonds because much of them are held by domestic investors who are unlikely to abandon them – even in times of crisis. Swiss franc because strict Swiss banking regulations provide investors with better capital protection.
