Dollar Trades Quietly Ahead of Key Speeches
The US dollar has been trading quietly, with oil prices easing after Brent crude dropped nearly 8% this week.
Military intervention in Iran is off the table, according to recent policy escalation by the US administration, which has alleviated some pressure on energy prices. However, reports of an 'interim framework' between Iran and Oman have added to the softness in oil prices.
The conflict's history suggests that these talks may not be promising, but the economic pressure through policy measures is seen as a more reliable development than renewed hopes of de-escalation.
The dollar awaits its next catalyst, with Treasury Secretary Scott Bessent's fiscal plans and Kevin Warsh's keynote speech on Friday being the clearest near-term drivers. A downside bias on the dollar ahead of Warsh's comments is maintained by analysts.