Trial now
FOREX
FOREX: Trump soothes agitated markets, underpinning risk rally
- At a much-awaited press conference in the White House, the US President stated
that "Iran appear to be standing down" in a speech that suggested his preferred
tool going forward would be economic sanctions and starving Tehran of dollars,
rather than surgical missile strikes. Markets welcomed the news, which bid
equities up once again to alltime highs, crushing those who had adopted oil or
gold longs on the back of yesterday's Iranian strikes in the process.
- USD/JPY rallied to fresh 2020 highs, hitting Y109.11 to mark a 150 pip trip
from the overnight lows. This sets up JPY bulls well for an attempt on the key
resistance at December's highs of Y109.73. The moves kept JPY at the bottom of
the G10 pile and helped drag EUR/CHF off multi-year lows printed earlier in the
session at 1.0783, which had raised some questions about just when the SNB would
step in to intervene.
- German trade balance and industrial production data is due Thursday, US weekly
jobless claims. Speeches from BoE governor Carney, BoC's Poloz and a number of
members of the ECB and Fed should keep markets busy Thursday.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com