USD Strengthens as US-Iran Deal Hopes and SpaceX IPO Boost Risk Sentiment

The US dollar opens the week on a positive footing as geopolitical tensions between the US and Iran show signs of easing after three-and-a-half months of conflict. Both sides appear willing to reach a resolution, which is reducing safe-haven demand and supporting broader risk appetite across financial markets. Adding to the constructive market mood, SpaceX's highly anticipated public debut on Friday exceeded expectations, alleviating significant investor anxiety and boosting confidence in US equity markets. The combination of geopolitical de-escalation and strong US corporate sentiment is creating a risk-on environment that typically supports USD strength against traditional safe havens like JPY and CHF, while potentially weighing on gold. Traders should monitor the actual details of any US-Iran agreement, as the market impact will depend on whether the deal delivers substantive outcomes on sanctions relief and nuclear commitments. Key pairs to watch include USD/JPY for risk sentiment signals and USD/CHF as safe-haven flows unwind. Near-term, failure to finalize a credible deal could quickly reverse the current optimism.