From Marc Chandler at Bannockburn Global Forex:
The US dollar rallied strongly during the Federal Reserve’s press conference yesterday as rates jumped in response to what was widely seen as a hawkish hold, especially given Chair Powell’s framing. There has been limited follow-through dollar sales today, but the technical damage inflicted on many pairs has not been reversed. The Bank of Japan, the Swiss National Bank, and Sweden’s Riksbank have announced unchanged policies, as expected, and now attention turns to the Bank of England and the European Central Bank. Neither will move, but how they view the risks is important. We expect both will indicate the lack of urgency.
The war appears to have been extended with the attack on the South Pars gas field jointly run by Iran and Qatar. News reports say that President Trump is urging restraint, but the horse seems to have bolted already. Given the feints and attack on Iran during negotiations and after the US claimed to have destroyed Iran’s nuclear capability last June, it is difficult to know what is real and what is a war tactic. May WTI is within yesterday’s range, but the front month Brent contract made new highs today....
....MUCH MORE
