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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

Markets Prepare for Iran Deal Announcement; Oil Prices Stall Near Multi-Year Highs

Published May 8, 2018
  • US President Donald Trump is set to announce his administration’s decision on whether the United States will pull out of the 2015 Iran deal at 2:00 PM EST today; doing so would reinstate US sanctions against Iran, prohibiting US companies from importing oil and other products from Iran.
  • Officials from the UK and France have strongly implored Trump to not abandon the deal; the EU is focused on working on the current deal to address its flaws, however, have since privately admitted that they expect Trump to withdraw from the agreement.
  • Oil prices rose to multi-year highs yesterday on speculation that global oil supplies would be constricted as a result of renewed sanctions on Iran. Prices have since steadied as traders began to take profits on the recent oil rally.
  • The US Dollar Index rose to its highest level since December 2017 this morning as investors are placing greater expectations for further interest rate hikes from the Federal Reserve; Fed Chair Jerome Powell noted this morning that “financial markets have gotten the message on the US Central Bank’s plan for gradual rate increases”.
  • NAFTA talks resumed yesterday as Mexico and the US met to negotiate auto-parts rules for the deal; Canadian trade representatives will meet with US trade officials to discuss the same clauses later today.