Euro slides to its weakest level since July

Following Trump's address to the UN, the hope for a resolution with Iran appears to be waning.

Earlier, a Kyodo report indicated that Iran might reopen the Strait of Hormuz if the US lifted its blockade. However, that account was denied by FARS, and Trump made no such reference in his UN speech. Rather, he suggested a deal would probably come after the midterm elections.

It would be natural for him to seek an agreement ahead of the midterms to keep Republican control, yet he appears to think that isn't feasible. Even so, reliable reports indicate that neighboring nations are engaged in diplomatic efforts, so the situation could shift rapidly.

The market currently appears to be betting against a deal, as WTI crude has climbed to $91.68 from a low of $89.16. This same mood is driving demand for the US dollar, pushing yields higher and dragging the euro lower. The drop today has taken the euro to its weakest point since July 29, with little support visible until the July low of 1.1350.