USD -
The Dollar's dramatic change of fortune continues as we enter the third week of this conflict. Oil prices continue to grind higher as a clear reasonable solution to reopening the Strait of Hormuz fails to materialize and Iranian strikes continue on key Oil infrastructure.
There is even suggestions that a longer war could bring EURUSD, which is presently suffering at a 7 month low, to parity, meaning a further 15% movement on top of the already strong Dollar rally.
This seems quite distant from our present position, but even beyond the war ending rapidly, damage to existing infrastructure will likely continue to inhibit a full return to business as normal. Higher Oil prices mean a stronger USD and it's difficult to say that we have seen the peak in Brent just yet and so EURUSD at parity is a remote, but still potent enough, horizon should this not be concluded soon.
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