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HONG KONG — Major currencies remained stable in light trading on Thursday (April 2), as investors prepared for a crucial televised speech from US President Donald Trump, which is anticipated to provide insights into a potential ceasefire in the Gulf conflict.
In his national address scheduled for 9 PM EDT (9 AM SGT, next day), Trump is expected to announce that the US military has achieved its objectives in the conflict with Iran and will reiterate plans to de-escalate the situation within two to three weeks—comments that could significantly influence global markets.
Since the onset of the conflict in late February, the US dollar has seen increased demand as a safe-haven asset. However, the expectation of an imminent ceasefire has reversed some of the most favored market positions, leading to a two-day decline in the dollar.
The euro was trading at US$1.1592 (S$1.49) and the British pound at US$1.3308, both showing minimal change against the dollar during early Asian trading while maintaining recent gains.
Similarly, the risk-sensitive Australian and New Zealand dollars remained stable, trading at US$0.69265 and US$0.57495, respectively.
The dollar index, which gauges the currency against a basket of others, showed little movement at 99.56 following a 0.3 percent drop on Wednesday.
"The outcome now depends on what President Trump says in his address today," remarked Kyle Rodda, a senior financial market analyst at capital.com.
"There is a sense of cautious optimism, as market participants appear to be looking to reshape the narrative to explain the recent price movements—potentially indicating a de-escalation in the conflict."
Carol Kong, a currency strategist at Commonwealth Bank of Australia, warned that even if the US military begins to withdraw, it may not prevent Iran from limiting access to the Strait of Hormuz—a critical point for approximately 20 percent of global oil and liquefied natural gas flows.
"Along with damaged energy and transport infrastructure, energy supplies are unlikely to return to pre-war levels swiftly," she added.
The Japanese yen was trading at 158.64 (S$1.28), distancing itself from the crucial 160 level, which is considered a threshold for potential intervention by Japanese authorities.
In addition to Trump's speech later today, attention will shift to Friday's non-farm payrolls report, with the market anticipating a 60,000 increase in jobs for March, according to the median forecast from economists surveyed by Reuters.
A significant decline in the labor market could reignite expectations for interest rate cuts from the Federal Reserve this year, which have been largely diminished due to inflation concerns stemming from rising oil prices linked to the Iran conflict.
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