EUR/USD, USD/JPY flows: Trump doesn't get the memo, oil and yields off lows
Oil backs off early optimism after usual threat laden Trump speech
Yields and dollar also back higher on the day
Probably not something that should have left the market too surprised but Trump's florid speech, threatening to annihilate Iran, not exactly smoothing the way to a deal, if also saying a deal was possible after the US elections. The usual approach to pressure diplomacy but it hasn't been the route to speedy resolution thus far and it doesn't seem to show the urgency to resolve ahead of the midterms that it might warrant.
While also suggestions that Trump would like to meet Iranian officials 'if conditions right', one is not scheduled. Oil has backed off from the early optimism and need to hedge chances of a move lower, Brent currently sitting more on the fence back on and above the $100 mark. Dollar also back to supported and US10s back at the day's yield highs, slightly up on the day nopw and just off 5%. Still a case of not resolved until and unless it is resolved, and while it is unresolved US rates face the same pressures...