• Sun / 20 June 2021 / 13:21
  • Category: Economy
  • News Code: 1400033022931
  • Journalist : 71600

Iranian rial could be poised for massive rally if Iran rejoins JCPOA: Ed Moya

Iranian rial could be poised for massive rally if Iran rejoins JCPOA: Ed Moya

Tehran (ISNA): Nuclear talks are still ongoing and there are some hopes that Iran and the United States may find common ground and return to compliance with the accord. Currency market and oil market are among those which may be most affected if the agreement is revived.

For further discussing these issues, we’d asked Ed Moya for a commentary. Ed Moya is Senior Market Analyst at OANDA.

Asked about oil prices in the short and long term, Moya said, “Crude prices are likely to drift lower in what will become a broadening formation.  Bullishness with oil prices was overextended and is now ripe for a pullback.  Given a very robust crude demand outlook for the second half of the year any weakness should be limited when comparing oil to other commodities, such as soybeans, lumber, and steel.  The longer-term outlook is fairly bullish given the lack of investment in new wells and as many countries continue to make the shift to cleaner energy”. 

Iranian Rial's rate against USD for this year

According to Mr. Moya, the Iranian rial could be poised for a massive rally if Iran rejoins the nuclear accord, “Financial markets are comfortably pricing in a conservative presidential outcome this week, with high expectations that Chief Justice Raisi will win and not disrupt nuclear talks.  Everything hinges on Iran returning to the nuclear deal and after plunging over 70% after President Trump abandoned the nuclear deal, the rial should steadily appreciate money is freed to enter Iran”.

Economic situation in Iran for this year

“Economic relief will hinge on Iranian compliance with the revived nuclear deal,” saidd Moya, adding that, “A swift recovery is unlikely, but economic activity will noticeably improve in the fourth quarter”.

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