The U.S. Dollar is trading in tight but favorable ranges against the majority of its G10 peers this morning as renewed tensions in the Middle East have Traders in a particularly risk-off mood.
The ceasefire announced on April 7th is set to expire late tomorrow, and there is a high degree of uncertainty that the two sides will meet for another round of negotiations ahead of the expiration after this weekend’s escalations. Most notably, Iran has reversed its decision to reopen the Strait of Hormuz after the United States maintained a naval blockade of the Strait and seized an Iranian ship. This represents an abrupt shift from where negotiations were on Friday when President Trump stated that an agreement was all but finalized and, as a result, Traders had priced-in a near term diplomatic resolution. Brent crude is trading over $94.0 a barrel.
What to Watch This Week…
- Monex USA Online is always open
CAD ⇓
The Canadian Dollar is down against the Greenback this morning following the release of inflation data from the Great White North. Inflation quickened to 2.4% year-over-year; the previous month’s figure was 1.8%. This increase in the headline CPI figure was driven in large part by an increase in gas prices as a result of the war in Iran.
GBP ⇓
The British Pound is down against the Buck this morning amidst calls for Prime Minister Keir Starmer to resign over the appointment of Peter Mendelson as ambassador to the United States. Local elections in the United Kingdom are scheduled for May 7th, and Starmer’s Labour party is set to take heavy losses. This presents an opportunity for rivals to challenge the PM for the top spot – provided he doesn’t resign first.
