Forex Today: Stocks Pare Gains on Iran Deal Gaps

The weekend's optimism over an imminent deal to end the USA / Iran war fades somewhat assa it becomes clear big gaps remain between the parties.

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1. , Markets have tempered their excitement over a deal to end the USA / Iran war which was touted by President Trump over the weekend, as it became clear that whatever verbal agreement there is remains shaky, with the parties publicly contradicting each other over the terms and execution of any deal. Last night local time, the US military attacked Iranian boats laying mines in the Strait of Hormuz, although Trump was quick to state this did not affect the ceasefire. Optimism remains, as evidenced by US equities remaining elevated albeit off yesterday's highs, and by Crude Oil remaining lower, although off yesterday's lows. With an absence of economic data releases today, markets will likely be paying attention to any announcements by Iran or the Trump administration, or related rumours.
2. U.S. equity index futures look likely to open today at record high prices, with the S&P 500 Index holding above the key 7,500 level while the NASDAQ 100 Index remains within reach of the 30,000 milestone. The Japanese Nikkei 225 Index remains near yesterday's record high. The Korean KOSPI Composite reached a new record high price. Trend traders will want to be long here.
3. In the Forex market, the US Dollar Index has regained some ground after yesterday's drop, on the decline in risk-on sentiment. New Zealand Dollar has been the weakest of all major currencies since today's Tokyo open, while the Australian Dollar has been the strongest.
4. There are no potentially high-impact economic data releases scheduled today, so it might be a relatively quiet day in the markets.