| The U.S.-Iran pact curbing Iran’s nuclear capabilities has had an interesting impact on currencies, allowing them to diverge from their traditional correlation to monetary policy by first influencing oil prices, according to a note on Tuesday from French bank Crédit Agricole.
The U.S. dollar rallied against almost all of the G-10 currencies but declined against emerging market currencies. “The price action displayed an interesting shift away from the monetary policy outlook toward broader macro trends related to the sensitivity to oil prices,” wrote foreign exchange strategist Mark McCormick. “The outlook for oil importers and exporters terms of trade is likely the driver behind the knee-jerk market reaction to the nuclear deal."..............................................Full Article: Source
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