EUR/USD flows: US deficit narrows; focus elsewhere
US deficit unexpectedly narrows but focus elsewhere
MoU with can kick on nuclear details logical outcome, but unpredictable decision
Unexpected narrowing in the US trade deficit to $82.4bnm driven by a pickup in exports. Wholesale inventories +0.5%. Positive data at the margins but focus very much elsewhere. Unless the month end 4o'clock fix provides any flurry of excitement, the market will mainly be about risk management into the weekend - though easier said than done of course, other than not running any unnecessarily large positions.
Odds likely favour a conclusion of MoU accepted but with provisos and thornier nuclear issues can kicked to the final agreement. That would provide near-term relief and still leave a residue of jeopardy behind. Odds probably don’t really come into it when it comes to this call of course.