Search ForexCrunch

According to a  Reuters news,  the  Secretary of State, Mike Pompeo, who is expected to speak later today, will likely announce that the United States is softening its position on Israeli settlements in the occupied West Bank, a Trump administration official said on Monday.

“Pompeo is expected to say the administration of President Donald Trump will no longer abide by a 1978 State Department legal opinion that the settlements were “inconsistent with international law,” according to the official. The move is likely to be welcomed by right-wing Israeli Prime Minister Benjamin Netanyahu and anger the Palestinians, as well as other countries seeking to resolve the Middle East conflict,” the news reported.  

Markets implications:

Middle East conflict is always positive for the price of oil, and in terms of FX, the Canadian Dollar has a direct and positive correlation to oil prices. Oil has been on the rise of late, bumped up on the latest optimism surrounding Sino and China trade talks and prospects of a trade deal.  

  • WTI bulls stopped in their tracks on $58 handle

  • USD/CAD retreats to 1.3200 area on broad USD weakness