The easing of tensions between Israel and Iran is diverting investors from risk-off assets such as the dollar: the greenback is halting its advance, but not retreating.
It is stabilizing against the euro (1.0655) and most other currencies: the $-Index ended unchanged at 106.13, and has now been stuck at 106.00 for 7 sessions.
The greenback nonetheless made up 0.15% against the pound, yen and Swiss franc… but these gains were cancelled out by the -0.4% decline against the Canadian dollar
The main victims of the easing on the geopolitical front were the precious metals: gold fell by -2.6% to $2.327 and Silver by -5.2% to $27.2/Oz).
Forex traders will have to wait another 48 hours before discovering the evolution of durable goods orders (this Wednesday), then 72 hours for the first US gross domestic product (GDP) figures for the 1st quarter (the consensus forecasts a slight slowdown in growth, to 2.9%, after the 3.4% recorded in the fourth quarter, Goldman Sachs expects +3.1%).
But the highlight of the week will be the US PCE index, the Fed’s preferred indicator of price dynamics, on Friday.
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