US President Trump Announces Peace Talks to Resolve Ukraine Conflict

US President Trump Announces Peace Talks to Resolve Ukraine Conflict

Over the weekend, U.S. President Trump announced that Russian President Putin has agreed to initiate peace talks to address the ongoing conflict in Ukraine, which has lasted nearly three years since the war began. According to U.S. officials, the Trump administration will soon facilitate negotiations between Russian and Ukrainian representatives in Saudi Arabia.

Peace Talks Deals Remain Uncertainty

Since the conflict began in February 2022, Russia has occupied about 20% of Ukraine’s territory. Moscow demands that Ukraine cede part of its land and adopt a permanent stance of neutrality, meaning Ukraine would not seek NATO membership.

Conversely, Ukraine insists that Russia must fully withdraw from the territories it has seized, and Ukraine seeks NATO membership or alternative security guarantees to prevent further Russian aggression.

While Trump expressed optimism about the potential peace agreement, he acknowledged that it is unlikely Ukraine will regain all its occupied territories under any deal.

Although the peace talks may remain fragile, the news has sparked renewed risk-on sentiment in global financial markets, leading to a pullback in both the US Dollar and Gold, traditionally seen as safe-haven assets.

Technical Outlook for U.S. Dollar Index

From a technical perspective, while the broader trend for the U.S. Dollar remains bullish, the recent breakout from a triangle consolidation pattern suggests the possibility of a near-term corrective phase. This is further supported by the DXY losing ground near the 107.00 level.

With 107.00 support likely to fail, a deeper pullback in the U.S. Dollar Index seems probable. Bearish momentum could take control, and we may see a retest of the next key support levels around 106.00 to 105.70 in the near term.

(US Dollar Index 4-Hour Chart, Source: Trading View)