The U.S. Dollar is trading lower against it’s G10 peers this morning as Traders focus on last-minute ceasefire negotiations ahead of President Trump’s new deadline for Iran to reopen the Strait of Hormuz.
In an expletive-laden post on Truth Social, Trump threatened strikes on Iranian power plants and bridges should the Middle Eastern country not reopen the strait by 8pm on Tuesday. Egypt, Pakistan, and Turkey are reportedly working to secure a 45-day ceasefire amidst continued fighting. Israel, Kuwait, and the United Arab Emirates reported overnight attacks, and Israel struck an Iranian petrochemical factory responsible for 50% of the country’s production.
Domestically Traders are focused on the busy week ahead with regard to data releases. Today will kick off with the ISM Services Index release at 10am, followed by Durable Goods tomorrow morning, Jobless Claims and GDP on Thursday, and CPI on Friday. Friday’s CPI release is going to be of particular interest, as it will provide the first real measurement of the war in the Middle East’s impact on inflation.
What to Watch This Week…
- Monex USA Online is always open
AUD ⇑
The Australian Dollar is leading gains versus the Greenback among the G10 this morning as ceasefire negotiations remain front and center for many Traders. Inflation concerns led to the Reserve Bank of Australia hiking rates at their March policy meeting, and Traders are currently anticipating 2-3 additional hikes this year. This would bring the Official Cash Rate to a level not seen since late-2008.
CAD ⇑
The Canadian Dollar is edging higher versus the Buck this morning on ceasefire optimism. The Loonie has lagged behind its peers during this sell-off for the Buck but has still managed to capture some of the upside ahead of their own data releases this morning. Canadian PMI figures are due to be released at 930am and previous figures showed a slight degree of economic contraction.
