US Dollar Strengthens Against Euro and Yen as Middle East Risks and Central Bank Expectations Drive Markets
United States The US dollar is strengthening against the euro and the yen, while showing mixed performance against the pound.
United States The US dollar is strengthening against the euro and the yen, while showing mixed performance against the pound.
Shares of The Walt Disney Co., one of the leaders in the entertainment industry, are trading near 103.00.
Shares of American Express Co., one of the leading US multinational payment services companies, are trading near 332.00.
Rising geopolitical instability is driving higher volatility in the asset. Against this backdrop, it makes sense to stick with the neutral-to-bullish price scenario that has been in place since the beginning of the year.
Brent Crude Oil prices have refreshed the April 13 high around 105.64 amid the ongoing blockage of the Strait of Hormuz, as there has been no progress in diplomatic negotiations between the United States and Iran. Before the crisis, nearly 20.0% of global hydrocarbon flows passed through the waterway, and any restrictions on traffic are intensifying fears of a supply shortage and pushing prices higher.
Shares of telecommunications conglomerate AT&T Inc. are trading near 26.00.
The US dollar is showing restrained strength against the Swiss franc, with USD/CHF trading near 0.7856 and extending the upward impulse from the previous session, when the instrument managed to recover most of the losses recorded earlier in the week. As before, the main drivers behind the pair’s gains are geopolitical factors, while the fundamental backdrop is changing only marginally.
During the morning session, the USD/JPY pair is attempting to extend the upward momentum of recent days, trading near 159.55.
The benchmark index of the US economy, the S&P 500, is correcting near 7092.0 amid mixed signals surrounding the development of the Middle East conflict. On Tuesday, US President Donald Trump announced an extension of the truce with Iran while the Islamic republic’s delegation works on a “single proposal for ending the crisis.”
Two weeks ago, shares of The Home Depot Inc., the largest home improvement company, resumed their upward movement after the United States and Iran reached a ceasefire, amid hopes that the two sides would eventually strike a mutually beneficial peace deal that would reopen the Strait of Hormuz, ease pressure on oil prices, and restore demand and consumer confidence. This is especially important for a company that sells a wide range of home-related products through 2,300 retail centers across the country. Against this backdrop, the stock reached seven-week highs and is now holding near 350.60.
Since the beginning of the month, Brent Crude Oil prices have been declining amid expectations of a settlement in the US-Iran conflict. After the two sides announced a two-week ceasefire on April 7, the situation moved into a phase of diplomatic consultations and political bargaining, and prices fell to a six-week low of 84.20 last Friday. However, they have now recovered part of the lost ground, returning to the 91.00 mark due to uncertainty surrounding the next developments.
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