FUNDAMENTAL OVERVIEW USD: The US dollar has been gradually strengthening since Tuesday as the US-Iran stalemate led to some profit-taking on bearish dollar bets.
FUNDAMENTAL OVERVIEW USD: The US dollar has been gradually strengthening since Tuesday as the US-Iran stalemate led to some profit-taking on bearish dollar bets. There’s still no clear sign of a second round of talks after Iran refused to send a delegation to Islamabad on Tuesday due to the US blockade in the Strait of Hormuz.
The only good thing that is holding everything from puking hard is the ceasefire. Just today the Israel and Lebanon ceasefire got extended by another three weeks and the US-Iran ceasefire looks to be open-ended. In the meantime, everyone has been replenishing their military stockpiles, with the US sending more ships and military forces to the Middle East.
Traders will need to stay nimble because things can get ugly very quickly. The price action continues to be driven by US-Iran headlines, and this is unlikely to change until we get an official resolution. JPY: On the JPY side, the currency has been mostly driven by US dollar strength and weakness as Japanese macro conditions continue to point towards a neutral policy.