The Pres. Trump Truth Social post regarding good and constructive talks with Iranian officials reversed oil price with the price moving from a high of $101 to a of $84, saw US yields move lower with the 10 year moving from 4.44% to 4.31%, and saw the US stocks move from being down around -0.80% in the S&P to up 2.5% in pre-market trading.
The USD moved sharply lower as well with the dollar index moving from 100.148 to 99.128 ( 1% decline).
Since than there has been a rotation the other way again as traders ponder the truthfulness of the Truth Social post. Is Trump TACOing (just chickening out as stocks and oil hurt him politically), or TrOLl-ing (TRump Only Lies because stocks and oil are moving lower). It is hard to say. You hope for peace, but wonder what is the truth. Who are the leaders they are talking to? Or is it just a repeat of Hammas and Isreal where peace really isn't peace - it is just a pause. Of course, the opening of the Strait of Hormuz is the proof to the war calculus. If it opens peacefully, there is hope. If it does not, the hope for peace is not done. The war will continue.
IN the video above, I take a look the EURUSD, USDJPY and GBPUSD from a technical perspective and outline the key levels in play given the volatile moves first higher in the USD, then lower and now back higher.
