Dollar Mixed as Tensions Rise
The U.S. Dollar is trading in mixed ranges after President Donald Trump threatened to resume strikes on Iran if a deal cannot be reached in the coming days.
President Trump reaffirmed that the U.S. was holding off taking additional military action for a ‘limited period of time’ at the behest of regional allies, but stretched that period from two-to-three days into early next week. In response, the Iranian Revolutionary Guard Corps stated that should aggression against Iran resume, they would extend the conflict beyond the region. The two sides appear at a stalemate with regard to converting their incredibly fragile ceasefire into a more permanent peace, with neither willing to make concessions.
Traders are awaiting the release of the minutes for the Federal Open Market Committee’s (FOMC) April meeting, Chair Powell’s last, at 2pm this afternoon to confirm rate hike expectations for later this year.
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GBP ↑
The British Pound is up against the Greenback this morning after data out of the U.K. showed that inflation fell to its lowest rate in more than a year. Month-over-month CPI came in at 0.7% versus 0.9% expected, while the year-over-year figure came in at 2.8% versus 3.0% expected. This has prompted Traders to bet on fewer interest rate hikes from the Bank of England this year, even as economists anticipate returning price pressures.