So, what gives in the currencies space?
If anything, it looks like the geopolitical tensions between Iran and Israel have given traders some scope to pull back on dollar shorts. Or should I say it is reason enough for some covering after some relative weakness in May trading. For the time being, the bids here don't look to be amounting to much. But as always, the technicals are our best friend in determining that.
In the bigger picture though, keep in mind that the impact of geopolitical tensions on market moves is always going to be a temporary one. And once that fades, we'll go back to focusing on what we did before. Has everyone forgotten we still got a bunch of trade deals that is supposed to be wrapped up?
And when we start to move back towards focusing on the policy incoherence by the US administration and more tariff concerns, the dollar could start to falter again as it did before. So, just be wary of that in relation to the gains we're seeing today.
This article was written by Justin Low at www.forexlive.com. Read More Details
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