Currency markets are fully focused on the Iran nuclear deal at the moment, with Trump’s decision due at some point today, the likelihood being that the U.S. will withdraw from the agreement, despite pressure from European governments to stay in. The oil market is seemingly pricing in a withdrawal, with WTI crude trading above 70.00. Either way Trump decides to go, we should see some form of volatility not only in oil prices, but the dollar index and commodity linked currencies at some point this afternoon.
In other slightly older news, non-farm payrolls data was released on Friday printing slightly weaker than expectations, weighing on the greenback initially. It didn’t take long to bounce back though, as investors took a chance to look more closely at the numbers and the fact that the unemployment rate had fallen below 4%, a number that suggests that the Fed will have to hike interest rates maybe twice this calendar year.
Later on in the week this week, US consumer and producer inflation data is released along with unemployment claims and consumer sentiment. Other than that it’s a fairly quiet week as far as U.S. data is concerned.