USD volatility expected as Trump denies Iran-Israel cease-fire talks

The US dollar showed mixed reactions during early Asian trading as President Trump's denial of Iran-Israel cease-fire discussions created uncertainty in safe-haven flows. Trump contradicted French President Macron's statement about his early G7 departure, claiming it had nothing to do with Middle East tensions. This geopolitical uncertainty initially weakened USD/JPY by 0.15% to 109.85 as traders sought yen safety, while gold prices rose 0.3% to $1,285. The lack of clarity regarding Trump's actual reasons for leaving the summit early has increased market volatility, with implied volatility on major USD pairs rising. Currency strategists note that any escalation in Middle East tensions typically benefits traditional safe havens like JPY and CHF against risk currencies. Near-term, USD/JPY faces support at 109.70 with resistance at 110.20, while traders await further clarity on both G7 outcomes and Middle East developments.