US FX WRAP: Dollar mixed against peers as weekend US/Iran updates await

The Dollar saw mixed performance against G10 peers on Friday, in which was a day, yet again, dominated by Middle East headlines ahead of further US/Iran at the weekend. There have been plenty of conflicting reports surrounding the progression and likelihood of a deal, but the most recent update, via N12; Ravid said, via a US source, the President is frustrated and may decide on "decisive action" against Iran, which would allow him to declare victory and end the conflict. Away from the Middle East, the new Fed Chair, Warsh, was sworn in, but did not say much of importance in his first address. Further on the Fed footing, Governor Waller gave some hawkish remarks as he said should remove easing bias from the statement, if expectations start to become unanchored, "would not hesitate" to support a rate hike, and cannot rule out hikes if inflation does not abate soon. Although he did note he is not advocating for a hike at the moment, and does not expect to support a change in the policy rate in the near term.

As mentioned, G10 FX was mixed vs. the Greenback with only the Swissy and Pound eking out gains, albeit in thin currency-specific newsflow. EUR was flat, while CAD, JPY, and Antipodeans saw losses to differing degrees, with the latter also weighed on by pressure in metals prices. Looking at global data, Japanese inflation was cooler than expected, while UK retail sales disappointed, but had little sway on Cable. In Canada, retail sales impressed. As mentioned, the state of play was dictated by US/Iran rhetoric as participants await any de/escalation over the weekend.