Fog of war settles on currency markets, leaving trading directionless
Good morning. Currency markets are still struggling to navigate conflicting signals from the Middle East. Iran’s deputy foreign minister reportedly told Sky News Arabia that Tehran might be willing to surrender its enriched uranium stockpile in “return for something good”, but an empty tanker was struck off the coast of Kuwait overnight, pointing to a widening campaign against Gulf shipping. Against that backdrop, ten-year Treasury yields are rising for a fourth consecutive day, equity futures are little changed, and the dollar is edging higher. The euro, sterling and yen are all on the defensive, yet holding above key technical levels...