The broader market mood remains more cautious so far on the day. European indices are lightly changed while S&P 500 futures are down 0.1% with traders and investors still digesting the latest developments from the Middle East.
US-Iran talks continue to stall but there is some hope with reports emerging earlier today that Iran might offer up a concession in “reopening” the Strait of Hormuz before sitting down for nuclear talks. And that coincides a little with a slight push lower in the dollar, even as broader risk sentiment is keeping more reserved. EUR/USD is now up 0.2% on the day to 1.1745, sticking with the bounce off the 200-day moving average (blue line) from last week:
The chart reaffirms that buyers are still trying to force their agenda, defending the key support level above. That comes after a gap to the downside at the open today, in which the pair started off at 1.1690. So, it’s a decent push higher on the session so far.
That being said, we are seeing price action now run into some near-term resistance from the 200-hour moving average at 1.1750. So, buyers are not fully in near-term control just yet.
Elsewhere, we are seeing more of the same kind of price movements. AUD/USD also opened with a gap lower at 0.7125 but is now trading up by 0.5% on the day 0.7185. There is some key resistance around the region of 0.7187-00 but a firm break there opens up the path to its highest levels since June 2022 next.
Meanwhile, USD/CAD is also dropping by 0.4% to 1.3610 – its lowest level in seven weeks. That comes as oil prices continue to stay underpinned with Brent crude (July contract) up 2.6% to $101.70 while WTI crude is up 2.3% to $96.55 on the day.
Even precious metals are also looking cautious, with gold down 0.1% to $4,703 and silver down 0.1% to $75.66 currently.
As such, it is only the dollar that is acting a little out of sync here considering the movement in other asset classes
