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Apr 20 - 04:55 PM

EUR/USD - US Recap: EUR/USD Rises Against Mixed Dollar As Ceasefire Deadline Nears

By Robert Fullem  —  Apr 20 - 03:16 PM

The dollar was mixed on Monday as oil held steady and equities softened ahead of a possible U.S.–Iran meeting, with a two-week ceasefire set to expire this week. President Donald Trump said a U.S. delegation is set to land in Pakistan within hours for talks on Iran, adding that he would be willing to meet with senior Iranian leaders himself if progress is made. Iran is weighing attendance at U.S. peace talks in Pakistan, though no decision has been made, a senior official told Reuters. In a statement, Iran's foreign ministry said U.S. ceasefire violations are blocking diplomacy and that Tehran will decide its next steps. Pakistan is confident it can bring Iran to U.S. talks, a senior Pakistani official told Reuters. Shipping through the Strait of Hormuz was largely halted Monday, with only three crossings in the past 12 hours, shipping data showed. ECB President Christine Lagarde said the economic impact of the Iran war remains below the ECB’s adverse scenario for prices and growth. Fed chair nominee Kevin Warsh will tell lawmakers at his Tuesday confirmation hearing that he is "committed to ensuring that the conduct of monetary policy remains strictly independent." Canada’s annual inflation rate rose to 2.4% though a core reading was below forecast.

DXY stayed range-bound around 98, with volatility little changed. EUR/USD firmed amid dollar sales ahead of possible U.S.-Iran talks, with bullish technical signals suggesting constructive consolidation.

GBP/USD edged modestly higher as risk sentiment steadied ahead of the ceasefire deadline and markets maintained a wait-and-see stance on geopolitics and Bank of England policy.

USD/JPY hovered near flat after briefly dipping to a new session low, leaving the pair coiling in a tight 158.00–159.50 triangle, with Bollinger bands at their narrowest since September. AUD/USD rose amid dollar weakness, with a bullish candle pattern pointing to a constructive pause.

Treasury yields were up as much as 2 basis points as the curve flattened. The 2s-10s curve was down about 1 basis point to +53.0bp.

The S&P 500 eased 0.24%.

WTI oil rose over 6%.

Gold slipped 0.30% while copper fell 1.2%. Heading toward the close: EUR/USD +0.20%, USD/JPY +0.2%, GBP/USD +0.13%, AUD/USD +0.15%, DXY -0.06%, EUR/JPY +0.33%, GBP/JPY +0.29%, AUD/JPY +0.27%.(Editing by Burton Frierson Reporting by Robert Fullem)

Source:
London Stock Exchange Group | Thomson Reuters
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