investingLive Americas FX news wrap: Markets whipsaw on conflicting peace deal news

FX markets whipsawed on conflicting Iran peace-deal reports, driving volatility in risk-sensitive currencies. A state-TV claim of a draft MoU (including US force withdrawal and lifting of the naval blockade) briefly boosted risk sentiment and oil expectations before the White House called the report a “complete fabrication.” The reversal, together with Trump’s comments that Iran would not get sanctions relief even if it surrendered highly enriched uranium and his “not there yet” stance on a deal, left markets uncertain. AUD/NZD led moves, suffering its largest single-day decline since 2022 as traders digested the mixed geopolitical signals and stronger US data. Resilient US labour indicators (weekly ADP pulse) and an improved Richmond Fed composite argue against near-term Fed rate cuts, capping risk-asset rallies even if oil eases on any eventual deal. Overall, the session saw choppy FX flows driven by headline risk and macro data, pressuring commodity-linked and risk-sensitive pairs.