As the trade war between the USA and China rages, the Greenback appears to be the default currency for investors as risk moves off the table and into safe-haven buying. Trade uncertainty has boosted the US Dollar in the last few months as the US economy is seen as stronger vs. its counter economies. Solidifying this view is the Federal Reserve holding a more hawkish tone where they raise rates to tame possible inflation as other central banks remain in the offensive mode to stoke inflation.
The US Dollar Index was a shade down on Tuesday and did momentarily fall just under 95, however, the bulls drove it back and closed the session around 95.19. The Dollar has failed to break string resistance up at the 95.50 level in over a year. Against the majors, EUR/USD buying 1.1597, GBP/USD sits at 1.2868.
Global risk events to highlight are the stance the Berlin and Beijing talking heads are taking on the US sanction invoked on Iran. They are encouraging their national companies to remain and do business with Iran. These companies are pulling out not wanting to risk the repercussions of Trump's statement saying any companies that do business with Iran will not do business with the United States.