Markets brushed off the US strikes in Iranian nuclear sites, over the weekend, with oil prices actually tumbling lower. Equity markets also showed positive gains, despite a limited Iranian response to the US actions, which appear to have calmed markets. US PMI data was positive and markets now look ahead to the appearance of Federal Reserve Chairman Powell before congress. The US Dollar was steady, with the EUR trading 1.1570, while the GBP held above 1.3550.
Commodity currencies remain under pressure, with the NZD flailing below 0.6000, while the AUD trades around 0.6450. Australian PMI data was better than expected, but trade barriers remain a threat, to both currencies. Attention now turns to the Congressional appearances of Chairman Powell, considering his continued obstinate attitude towards interest rate cuts, or will his attitude align more with the Whitehouse, as pressure mounts from both Trump and markets.
