USD Firmer but Off Highs Amid Soft Risk Sentiment – Scotiabank

USD firmer but off highs amid soft risk sentiment – Scotiabank

The US Dollar (USD) has advanced in overnight trading, with markets trading with a distinct whiff of risk aversion amid reports that the US is planning for a possible strike on Iran in the coming days, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Middle East tensions continue to drive FX markets - Monex Europe

USD As we noted earlier in the week, an initial sell-off for the dollar looked a little odd to us. With the conflict between Iran and Israel showing no signs of abating, risks skewed in favour of a tactically stronger greenback – a realisation markets seemed to align on yesterday afternoon with the DXY index peaking at just shy of 99. Admittedly, the move higher for the buck was catalysed by rumours that President Trump may soon decide to interv…