The U.S. Dollar is trading in mixed ranges this morning following the de-escalation of rhetoric in the Middle East.
The Commodity Futures Trading Commission (CFTC) Commitment of Traders (COT) report released on Friday afternoon saw Traders turn their most bullish on the Dollar this year, but much of those gains have been given up this morning after President Trump announced that the United States would postpone strikes on Iranian energy infrastructure for five-days. While Trump’s comments provide some slight reprieve to the markets, the postponement of strikes does not constitute a ceasefire, and it is important to note that Israeli strikes in the region are still ongoing. Iranian state media is also denying any form of negotiation with the US has taken place, and that President Trump is retreating in fear. The next couple of days will be watched closely to see if negotiations yield any constructive progress, or if strikes resume.
What to Watch This Week…
- USA Online is always open
GBP ⇑
The British Pound is up against the Buck this morning as yields on U.K. government bonds fell sharply due to renewed optimism following President Trump’s announcement that he would be pausing strikes on Iranian energy infrastructure.
EUR ⇑
The Euro is up against the Greenback this morning as President Trump’s announcement helped ease inflation concerns stemming from uncertainty surrounding long-term Liquified Natural Gas (LNG) supplies.
