As things stand, all eyes are fixated on the US-Iran conflict still. Talks are set to begin in Islamabad later today and that is what markets are watching very closely. As such, we’re very much caught in a bind now awaiting further headlines and murmurs about how things are going to go later in the day.

The dollar remains vulnerable as risk optimism holds but it is one that is fragile, just like the ceasefire truce. But without a lack of catalysts in the session ahead, we might see dollar pairs keep more rangebound awaiting further developments. It’s all on headline risks now.

Iran might deny wanting to send a delegation but the mood on the ground is that they are leaning towards participating, otherwise we wouldn’t see US president Trump make such a big show of it.

From hereon, it depends on how talks go and what conditions are set out and agreed upon. That especially with regards to the situation in Lebanon and the Strait of Hormuz.

There’s still much to look forward to but you get the sense that with Trump wanting to de-escalate and pull back on the conflict, that might be just what he gets. He will surely sell it as a “complete and total victory” but as long as tensions ease, markets will like that – at least until we get to the reality of the Strait of Hormuz situation.

For more information on how to use this data, you may refer to this post here.

Head on over to investingLive (formerly ForexLive) to get in on the know!