Daily currency update
After the US airstrikes on Iran’s nuclear facilities over the weekend it was a hugely volatile start to the week in financial markets. The dollar soared during yesterday’s Asian session on safe haven buying before giving up its gains’ as markets assessed Iran’s ability to retaliate was hugely limited. In the end Iran sent a small barrage of missiles towards an American airbase in Qatar which was likely a token gesture to appease domestic hardliners. There were no casualties reported. A ceasefire between Israel and Iran was then announced by Donald Trump which sent EUR/USD back above 1.16 for the first time in over a week and GBP/USD close to 1.36. Whether the ceasefire holds or not will be the main area of focus for the foreseeable future.
Key movers
Away from the Middle East the main events today are speeches from Bank of England Governor, Andrew Bailey at the House of Lords and Chairman of the US Federal Reserve, Jay Powell at the Senate in Washington. These normally would draw a lot of attention however all eyes will be on on Israel and Iran and whether they can maintain the peace.
Expected Ranges
GBP/USD: 1.3480 – 1.3635 ↑
GBP/EUR: 1.1660 – 1.1800 ↑
EUR/USD: 1.1440 – 1.1630 ↑
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