Israel-Iran Conflict Remains in Focus Ahead of Fed Decision

From Investing.com: 2025-06-17 05:54:00

Israel-Iran tensions continue to drive market movements, impacting the dollar and oil prices. Iran seeks ceasefire with Israel to return to negotiations with the US. Conflict escalates with new attacks reported in Tehran and ships hit in Gulf of Oman.

Federal Reserve faces tough decision amid heightened uncertainty, with inflation remaining a concern. Fed funds futures indicate market expects rate cuts, but Fed may take a cautious approach. New dot plot to be released Wednesday, potential impact on dollar.

Bank of Japan keeps rates steady, slows tapering due to uncertainty around tariffs. Governor Ueda emphasizes cautious approach to rate hikes. Market focus shifts to Friday’s inflation data for further clues.

Wall Street closes higher on Monday, driven by truce hopes, but stock futures point to lower open today. Geopolitical tensions impacting market movements, with gold reacting to reduced safe-haven demand. Dollar regains strength amid Israel-Iran conflict.



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