- The de-escalation in the Middle East has left the dollar vulnerable.
- The Bank of England is managing rate expectations, maintaining the outlook for two hikes.
Over the past two weeks, the has fallen to its lowest level since early March, giving back almost all the gains made since the start of the armed conflict in the Middle East. Talks with Iran are set to resume in the coming days. Donald Trump continues to insist that the war will end soon and that an extension of the ceasefire will not be necessary. Coupled with record highs in US stock indices, this is contributing to the continued rally in , as geopolitics has ceased to support the greenback, bringing macroeconomics back into focus.
Investors’ attention has also shifted to corporate earnings reports and Congress’s deliberations on Kevin Warsh’s nomination for the post of Fed Chair. Contrary to Trump’s promises, the…
