The U.S. Dollar is trading in positive ranges against the majority of it’s G10 peers this morning ahead of a new round of negotiations between the United States and Iran to be held in Islamabad as we approach the April 7th ceasefire’s expiration late Wednesday.
President Trump stated in an interview on Monday that he was unlikely to extend the ceasefire further and would not be “rushed into making a bad deal,” but was optimistic that the negotiations would go well. Iranian officials are not sharing that optimism, and there remains significant disagreement between the parties on key issues such as reopening the Strait of Hormuz, ending the U.S. blockade, and Iran’s nuclear program. The outcome of those discussions between Vice President Vance and Parliament Speaker Ghalibaf will be a major driver over the next few days.
In domestic news, Retail Sales for the month of March will be released at 830am, and are expected to show a healthy increase in consumer spending. Initial Jobless Claims for the week ending April 18th and preliminary PMI figures for the month of April are due on Thursday.
What to Watch This Week…
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NZD ⇑
The New Zealand Dollar is the only G10 currency up against the Buck this morning following a local inflation data release which showed that prices unexpectedly stayed above the Reserve Bank of New Zealand’s target in the first quarter. Traders are now fully expecting that the RBNZ will hike interest rates by July as a result, with additional hikes later in the year and potentially into 2027.
CAD ⇓
The Canadian Dollar is down against the Greenback this morning, snapping a six-day winning streak. The Loonie is under pressure as Traders look to take risk off the table ahead of discussions between the U.S. and Iran in Islamabad later today.
