USD Strengthens as US-Iran Ceasefire Talks Boost Risk Appetite, Oil Dips

The US dollar is seeing mixed flows as geopolitical developments surrounding US-Iran ceasefire negotiations reshape risk sentiment across markets. Reports indicate both sides are weighing a two-week ceasefire extension, with Axios noting progress toward a framework agreement following Tuesday's talks. The risk-on mood has lifted equities, with the Nasdaq climbing 1% to mark its 11th consecutive day of gains, while crude oil prices are ticking lower on reduced supply disruption fears. For forex markets, the easing geopolitical tension is reducing safe-haven demand for traditional havens like the Japanese yen and Swiss franc, while commodity-linked currencies such as the Canadian dollar face headwinds from declining oil prices. USD/CAD may see upward pressure as oil weakens, while USD/JPY could push higher on reduced haven flows. Traders should monitor official ceasefire confirmation closely, as any breakdown in negotiations could rapidly reverse current positioning. Key resistance and support levels across major pairs remain sensitive to headline risk from the Middle East.