Today is quite a busy day at the financial markets. Without a doubt the biggest ripple in the global economy right now is yesterday’s news that Donald Trump will pull out from the Iran nuclear deal.
This has had a massive impact on oil already. From yesterday prices have grown by 3%, with the Brent crude at $77.20, and the WTI at $71.17. This is due to the fact that with the nuclear deal off the table, Iran will have trouble with its oil exports, which would limit supply on the market. Furthermore, this also gives the green light to Iran to continue with its nuclear program, likely exacerbating the conflicts in the region, especially with Israel.
Today we also expect the EIA report on oil reserves in the United States. If there has been a decrease, this would further drive oil prices up.
The USD also continues to reign supreme over major currencies due to improving inflation outlook and rising Treasury yields.
