The US Dollar has regained ground this morning against both Euro and Sterling overnight as traders are seemingly concerned about the next round of negotiating talks between Tehran & The U.S, as potential talks look to have fallen through.
Both countries remain stuck over the Strait of Hormuz and the U.S blockade of Iran, with the extension of a ceasefire having minimal effects on the market. The Dollar also benefited from growing confidence that The Federal Reserve look increasingly likely to avoid interest rate cuts throughout this year, mainly due to increased uncertainty from this conflict. This was cemented slightly by incoming Federal Reserve nominee Kevin Warsh stating he has made no commitments to cutting interest rates.
A most recent poll conducted by Reuters earlier this week has found that investors and traders both expect the Federal Reserve to hold off from cutting interest rates until at least October.
Switching out focus to economic data, today brings the weekly release of Initial Jobless Claims and PMI releases. Weekly jobless data is set to show a further increase of 5,000 claims created, whilst the preliminary PMI data also looks to show positivity with figures climbing above 50. Although this data is preliminary, both releases will provide more clues on how the economy is performing.
GBP/EUR 1.1515 GBP/USD 1.3480 GBP/AED 4.9532
GBP/AUD 1.8836 GBP/CHF 1.0567 GBP/CAD 1.8414
GBP/NZD 2.2884 EUR/USD 1.1692 GBP/ZAR 22.2967