USD rises as Trump rejects Iran’s proposal

Today’s headlines

What’s happening: The US dollar edged higher this morning after recording sharp losses in the previous session.

What happened: Iran presented a new proposal, saying it was ready to open the Strait of Hormuz if the US met certain conditions.

President Donald Trump’s dissatisfaction with the new proposal lent support to the safe-haven US dollar.

Why it matters: Iran sent a new offer to the US through Pakistan, proposing to reopen the Strait of Hormuz if US lifts its blockade on Iranian ports and vessels. The proposal was intended to break the deadlock and set peace talks in motion.

Iran’s proposal pushed negotiations around the country’s nuclear programme to a later date, while the US has been focused on denying Tehran the ability to develop nuclear weapons.

US officials said that Trump was unhappy with the new proposal but did not mention the reasons for the dissatisfaction.

The latest developments followed the collapse of another round of talks in Pakistan. Meanwhile, the Strait of Hormuz remains effectively closed, exerting pressure on the global energy markets and raising inflation concerns.

Prospects of higher inflation raised speculations of the Federal Reserve keeping its benchmark rates higher for longer lent support to the greenback.

The US dollar index, which measures the greenback’s performance versus a basket of major peers, rose around 0.1% to 98.56 this morning.

The EUR/USD forex pair fell 0.1% to 1.1714, while the GBP/USD pair declined 0.1% to 1.3523. The USD/JPY forex pair rose around 0.1% to 159.55.

What to watch: Investors will keep an eye on developments around peace talks between the US and Iran and the reopening of the Strait of Hormuz.

Investors are also awaiting policy decisions from major central banks, with the Federal Reserve, European Central Bank and Bank of Japan set to announce interest rate decisions this week.

Data on S&P/Case-Shiller home price index (1700 UAE Time), Richmond Fed manufacturing index (1800 UAE Time) and CB consumer confidence (1800 UAE Time) will be released today. The S&P Cotality Case-Shiller home price index, which climbed 1.2% year-over-year in January, is expected to rise by 1.1% in February. The Fed’s Fifth District manufacturing index, which surged by 10 points to a reading of 0 in March, is expected to decline to -4 in April.

The markets today

Verizon Communications in focus today following the release of quarterly results

Context: Shares of Verizon Communications rose on Monday after the company reported stronger-than-expected earnings for the first quarter.

Details: Verizon reported revenues of $34.4 billion, missing consensus estimates of $34.8 billion. Adjusted earnings came in at $1.28 per share, topping Wall Street expectations of $1.20 per share.

The company’s GAAP diluted earnings climbed 4.3% year-over-year to $1.20 per share, while net income rose 3.3% to $5.1 billion.

Mobility and broadband service revenue grew 1.6% to $22.9 billion, while wireless equipment revenue grew by 5.2% to $5.7 billion.

The company added 55,000 postpaid phone subscribers, recording the first quarterly net addition in over a decade. It also added 341,000 broadband customers and 115,000 prepaid customers during the quarter.

“Our first-quarter 2026 results show that our turnaround is not only progressing, it is gaining momentum,” CEO Dan Schulman said.

With its revamped customer offers and plans resulting in significant additions to wireless subscribers during the first quarter, Verizon raised its 2026 earnings guidance to $4.95-$4.99 per share from its earlier projection of $4.90-$4.95 per share.

How shares responded: Verizon’s stock rose 1.6% to close at $47.10 on Monday following the release of quarterly results. The stock has gained around 20% over the past six months.

What to watch: Investors will continue monitoring the company’s capital expenditure and wireless subscriber count, which are expected to significantly impact its overall results ahead.

Other Markets: European indices closed lower on Monday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index down by 0.56%, 0.19%, 0.19% and 0.30%, respectively.

The news shaping the markets

An Iranian delegation travelled to Russia to discuss the ongoing conflict in the Middle East, suggesting growing ties between the two nations. The news sent the USD/RUB pair slightly lower in forex trading this morning.

New Zealand’s filled jobs climbed 0.3% to 2.35 million in March. While jobs rose by 14,600 from July’s lows, they remained around 39,000 below earlier readings, which exerting pressure on the NZD/USD forex pair.

Japan’s unemployment rate surged to 2.7% in March from 2.6% in the previous month, which sent the USD/JPY pair higher in forex trading this morning.

Brazil’s total outstanding loan stock rose 0.9% to R$7.2 trillion in March, lending support to the USD/BRL forex pair.

South Korea’s business survey index for the region’s manufacturing sector rose to 74 in April from 71 in March. However, the USD/KRW pair rose in forex trading this morning.

What else to watch today

Italy’s industrial sales (1200 UAE Time) and PPI (1300 UAE Time), European Central Bank’s consumer inflation expectations (1300 UAE Time), France’s unemployment benefit claims (1400 UAE Time) and jobseekers total (1400 UAE Time), India’s industrial production (1430 UAE Time) and manufacturing production (1430 UAE Time), Brazil’s IPCA mid-month CPI (1600 UAE Time), US ADP employment change (1615 UAE Time), Redbook index (1655 UAE Time), FHFA house price index (1700 UAE Time), Dallas Fed services index (1830 UAE Time) and money supply (2100 UAE Time).