Trump's UN Speech Boosts Dollar as Oil Prices Rebound
A sudden shift in market sentiment occurred when US President Donald Trump's speech at the UN indicated that a deal with Iran may not be imminent, potentially prolonging tensions and supporting the US dollar.
Earlier in the day, crude oil prices had fallen below $100 a barrel on reports that Iran was willing to re-open the Strait of Hormuz within 7 days if the US accepted certain demands. However, Trump's words poured cold water on these hopes, suggesting that a deal would likely follow the US elections.
The dollar initially came under pressure due to low oil prices and positive risk sentiment, but it has since rebounded along with crude oil prices. The greenback is expected to remain supported in the short term, potentially allowing pairs like USD/CHF to thrive.
The technical outlook on the USD/CHF pair remains bullish, with higher highs and higher lows forming a rising trend line. Analysts are expecting further upside continuation, initially targeting the liquidity above the recent high of 0.8264.