Dollar Rebounds as Trump's Speech Puts Pressure on Foreign Currencies

The US dollar rebounded from its lows after Donald Trump's speech at the UN, where he told Iran to reach an agreement or face rapid 'annihilation', predicting a deal would likely follow the US elections. This development has put pressure on foreign currencies and European indices.

Oil prices also bounced back, with Brent crude rising above $100 a barrel, despite earlier reports that Iran was willing to reopen the strait of Hormuz within 7 days if the US accepted certain demands.

The rebounding oil prices are expected to keep inflation concerns alive and limit the dollar's downside. The USD/CHF pair is also likely to continue finding support on dips, thanks to growing expectations that the interest rate differential between the US and Switzerland will expand further.