US dollar falls as the dust settles ...Middle East

The risk trade is swinging back into gear following Iran's half-hearted attempt at retaliation against a US base in Qatar, with the market concluding it was a show for the domestic audience, similar to last years volley at Israel.

The reversal in the US dollar today has been dramatic as an early bid has turned into heavy selling. The euro has turned into a solid winner on the day up 41 pips on net but 140 pips from the lows. It's back to trading within striking distance of 1.1600.

This article was written by Adam Button at www.forexlive.com.

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