Europe Summary and Highlights 04 March

The USD has sold off modestly in late morning Europe, on a NYT report that Iran had reached out to the CIA at the start of the week to discuss terms for ending the conflict – equities and government debt also bounced, with energy prices coming off mildly.  Traders are not sure that talks will occur or will be serious until next week when missiles start to get depleted – the Hill separately reported that Trump administration officials are concerned about Iran’s drones.  FX traders say some further trimming of USD longs could be seen if the reports are backed by further reports, but warn that an erratic Trump could reject talks at least for now.