World’s attention is focused on Trump’s announcement regarding his decision on 2015 Iran nuclear Deal (JCPOA), later today, at 2:00 pm EDT (18:00 GMT).
It is highly likely that the US President will withdraw USA from the agreement and reinstate sanctions against Tehran, since the so-called P5 partners to the deal – Russia, China, the EU, and the UN – did not manage to fix the flaws of the Deal and address Trump’s concerns.
Renewed Washington sanctions against Tehran may have a wider implication than oil supply and prices, given Tehran’s growing influence in the Middle East crises and its role in Syria and Yemen. Iranian President Hassan Rouhani warned U.S. would regret its decision to exit the deal, characterizing it as an “historic regret”, adding, on Monday, that Tehran would fiercely resist U.S. pressure to limit its influence in the Middle East.
White House announced today that China Trade Talks will resume in Washington, USA next week. China’s official will “repay” the visit of the US official to Beijing last week to smooth over trade differences escalated in recent months with both sides threatening to impose reciprocal additional tariffs on each other’s products, and in an effort to reach an agreement on US trade demands, renewing investors’optimism.
Economic Calendar Events to note:
09:30 GMT (05:30 EDT): The Australian Annual Budget will be released. This document outlines the government’s spending and income levels for the year ahead, as well as expected salaries and expenditures, deficit levels, financial objectives and foreseen investments. AUD crosses may be impacted by this release.
US Dollar climbed to fresh 2018 highs against its rivals as investors looking forward to Trump’s announcement on Iran Deal.
New Zealand Dollar remain almost unchanged while Australian Dollar moved lower after the release of mixed local data and weaker domestic retail sales Data.
Canadian Dollar, being a commodity linked currency, fell along with oil prices ahead of US President’s decision on Iran sanctions.
EURO remained under pressure as recent German industrial data, inter alia, shown that growth in Europe is losing ground, falling against most majors.
EURUSD continues to move lower, while its weakness likely to continue in the absence of hard EU data.
Japanese Yen rose against a currency basket on Tuesday, while US dollar was little changed against the traditional safe haven yen, with USDJPY last at 109.02.
Sterling fell again on Tuesday ahead of BoE Monetary Policy Committee’s decision on interest rate policy later this week and Brexit negotiations resurface.
Oil prices kept slipping on Tuesday, being under pressure, ahead of Trump’s Iran decision on whether to withdraw the United States from the Iran nuclear deal, a move that could disrupt global oil supply.
Sources: Reuters, Financial Times, CNN World
PLEASE NOTE The information above is not investment advice.