Europe Summary and Highlights 9 Jul
Oil trims back as Trump says Iran wants a deal
Dollar eases off, but EUR/USD mini bounce contained by 1.1450~
NZD remains the main outperformer post RBNZ
European morning session
Oil trims a little (-$ ½ to -$1) and the dollar gives some ground as Trump claims Iran called and want a deal. Sounds familiar of course and not necessarily true but the market at least taking this as de-escalation regardless. Comments/actions from Iran more important.
EUR/USD day high of 1.1450~ resistance before backing off to remain in tight range.
EUR/GBP also nudges a new low on this range break lower move, with the market short GBP, before levelling.
NZD continues to outperform since the RBNZ, NZD/USD being squeezed as it returned to prior range, 0.5740~ best so far, and AUD/NZD still rolling over from the range tops.
Asia Session
In the latest round of missiles exchange, the U.S. has targeted Iranian infrastructure, including bridges. It mark a critical escalation since the beginning of the week as Iran vows to retaliate and kept pressuring U.S. bases in the region. U.S. major equity indexes are keeping their cool while regional equities perform individually. AUD/USD is trading 0.09% higher at 0.6937 while NZD/USD continue to capitalize on post RBNZ strength to trade 0.44% higher. USD/CAD slips 0.07% with oil taking a breather.
USD/JPY paused just short before the July high as USD softens on more hopeful risk mood. No doubt missiles are still flying but market participants are choosing to believe Trump said "Iranians calling" rhetoric, even we viewed it with a big pint of salt. USD/JPY is trading 0.09% lower at 162.43. Else, EUR/USD is up 0.09% and GBP/USD is up 0.08%.