USD Weakens as US-Iran Deal Uncertainty Fuels Risk-Off Sentiment

The US dollar is facing broad pressure on Thursday as markets adopt a cautious stance amid the prolonged absence of any confirmed US-Iran memorandum of understanding. Negotiations that were initially described as "imminent" since last weekend have now dragged into their fifth day without official resolution, creating persistent uncertainty across forex markets. Conflicting headlines and reports of increased tensions on the ground have amplified risk aversion, driving flows into traditional safe havens such as JPY and CHF. USD/JPY has come under selling pressure as traders reduce risk exposure, while EUR/USD edges higher on relative dollar weakness. The lack of clarity is keeping volatility elevated, with traders reluctant to take directional positions ahead of any potential breakthrough or breakdown in talks. Key support for the Dollar Index sits near recent weekly lows, while resistance remains at pre-negotiation levels. Traders should monitor headline risk closely, as any confirmed agreement or escalation could trigger sharp moves across major pairs.