26.06.201900:51 Forex Analysis & Reviews: EURUSD: The EU is ready to submit a special financial mechanism to circumvent US sanctions in order to preserve the Iranian nuclear deal

Passions around Iran and the US are heating up. This morning it became known that yesterday the US president signed a decree on sanctions against the leader of the Islamic Republic, Ayatollah Ali Khamenei, which is also directed against other leaders of the country associated with the supreme leader. It is also expected that sanctions against Iranian Foreign Minister Javad Zarif will be imposed soon.

All this only aggravates the conflict and, ultimately, can lead to the rupture of diplomatic relations. Iranian authorities drew attention to this fact, saying that the sanctions against the leader of the Islamic Republic close the possibilities for diplomacy and threaten world stability, hinting at a high probability of military conflict.

Let me remind you that last week an American reconnaissance drone was shot down in the Gulf of Oman. Also, the United States accuses Iran of attacking oil tankers that occurred even earlier.

Today, the White House's national security adviser, John Bolton, called on Iran to discuss a new, broader agreement that could replace the 2015 nuclear agreement. I recall that the White House administration withdrew from the transaction in May last year, but other countries remained in it, including the EU countries.

In this regard, Iran has repeatedly appealed to the EU to ignore the sanctions imposed by the United States and to comply with the deal, which was concluded in 2015. Up to this point, the EU representatives ignored the appeal of the leader of the Islamic Republic, but today the EU representative Federica Mogherini said that the European Union is ready to launch a special financial mechanism to circumvent the US sanctions against Iran. She also noted that the EU authorities are doing everything in their power to complete the transaction on the Iranian nuclear program.

As for the fundamental statistics, which was released in the first half of the day for the euro area, then it is worth noting the deterioration of sentiment in the manufacturing sector in France, which is not surprising given the current problems associated with trade relations in foreign markets. The decline in the activity of this sector directly influenced the optimism of company executives, among whom the survey was conducted.

According to the statistics agency Insee, the French business sentiment index dropped to 102 points in June 2019, compared with 104 points in May. Economists predicted that the figure will not change in June compared with May.

As for the technical picture of the EURUSD pair, it remained unchanged. The demand for the euro is extremely low, indicating a possible reduction in the pair before the speech of the president of the Federal Reserve, from whom everyone is waiting for a direct statement on the subject of lowering interest rates. Even if this does not follow, it is unlikely that major players will give up risky assets, and with any good correction will open long positions. Good levels to buy are seen in the 1.1350 and 1.1320 area.