Pablo Piovano

The Greenback has started the week on the back foot, receding to multi-week lows on the back of the generalised improvement in the risk complex, all in response to rising optimism on a potential US-Iran deal.

The US Dollar (USD) regains some composure on Tuesday, rapidly reversing Monday’s downtick against the backdrop of persistent uncertainty around the US-Iran peace deal and the reopening of the Strait of Hormuz.

The Reserve Bank of New Zealand (RBNZ) delivered a clear hawkish hold on Wednesday, keeping the Official Cash Rate (OCR) unchanged at 2.25% while strongly signalling that rate hikes are likely in the coming months.

The Greenback traded in a vacillating fashion on Wednesday, always against the backdrop of the unabated uncertainty surrounding the Middle East conflict, at the time when bets for Fed rate hikes continued to gather pace.

According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance increased to 215K for the week ending May 23.

The National Bank of Poland (NBP) met the broad consensus among market participants and held interest rates steady and adopted a cautious tone earlier on Tuesday, saying that future data would guide policy choices but also that inflation concerns are very much alive.

The US Dollar (USD) maintains its positive performance for the third consecutive day on Wednesday, this time lifting the US Dollar Index (DXY) to the vicinity of two-month highs near 99.50 and opening the door to a potential test of the psychological 100.00 hurdle in the relatively short term.

The Bank of Canada left its policy rate unchanged at 2.25% on Wednesday, as widely expected, delivering a neutral-to-mildly dovish hold.

The Federal Reserve (Fed) left interest rates unchanged at 3.50%-3.75% on Wednesday, but the bigger surprise came from the updated economic projections and Kevin Warsh's first press conference as Fed Chair.

At the ECB Forum in Sintra, Fed Chair Kevin Warsh largely followed the script, offering little to change the market’s current view on monetary policy.