Israeli strikes on Lebanon throughout the course of yesterday have led to a rebound of more than 2% on Oil prices as there seem to be conflicting signals over whether Lebanon is covered under the ceasefire agreement. Since the latest round of strikes on Lebanon, Iran have hardened their stance stating any peace talks with The U.S would be unreasonable under the current conditions, as well as reports suggesting Tehran have once again closed the Strait of Hormuz.
Donald Trump has also seemingly gone against one of the points in Iran’s proposal, stating that all U.S ships, aircraft and military personnel will remain in place until an agreement is reached. It seems there is uncertainty around the position of Lebanon in the peace deal, with further talks set to take place in Pakistan tomorrow.
Turning out attention to economic data, the main release will come from The U.S with Personal Consumption Expenditure figures due to be released. This is the Federal Reserves preferred Inflation measurement, with stronger than expected readings generally supporting USD currency pairs. This afternoon’s release is set to show a marginal drop on the yearly figure, falling from 3.1% to 3% year-on-year. We also have GDP data for The U.S, and weekly jobless data which could lead to some fluctuation for USD currency pairs throughout the afternoon.
GBP/EUR 1.1472 GBP/USD 1.3381 GBP/AED 4.9174
GBP/AUD 1.9056 GBP/CHF 1.0587 GBP/CAD 1.8543
GBP/NZD 2.2968 EUR/USD 1.1654 GBP/ZAR 22.0487