US-Iran Relations Pressure Crude Prices Ahead of FOMC Meeting
Markets are cautiously approaching the upcoming Federal Open Market Committee (FOMC) meeting as crude prices pull back and US assets tread water. Energy markets have been pressured, with Brent Crude futures down by 1.6% since a recent update on US-Iran relations.
US President Trump stated that Iran wants to make a deal quickly and badly, but will determine whether the US will engage in negotiations. This development has led to oil prices rising by 1.0% earlier today. However, Brent Crude futures have pulled back since then.
The E-mini S&P 500 futures, on the other hand, have seen a slight increase of +0.4% following Trump's statement. The US Treasury also announced that it will buy back up to $6 billion in 10-20 year Treasuries on Thursday, a significant increase from previous guidance.
The USD/JPY has appreciated by 0.4% since the news broke out, while the ES 500 (U6) index has seen a +0.2% gain.