The dollar strengthened against major currencies on Thursday, reversing two days of declines, following U.S. President Donald Trump’s address on Iran, which dashed hopes for a potential ceasefire in the Middle East conflict that has unsettled investors and disrupted markets. In the national address delivered by Trump, he indicated that the conflict in Iran is expected to come to a close soon; however, he noted that U.S. military operations would persist in targeting specific locations over the forthcoming two to three weeks.

The dollar index, which assesses the greenback relative to a selection of currencies, rose to a peak of 99.925 following the speech. The most recent trade reflected an increase of 0.3%, positioning it at 99.861. The dollar has gained from a surge in demand for safe-haven assets since the onset of the conflict in late February. Anticipations surrounding a potential ceasefire have led to a reversal of some of the markets’ favored trades earlier this week, resulting in a two-day decline for the greenback. “Trump’s comments failed to reassure markets … ​markets are starting to realize that the war will probably escalate further from here before ​de-escalating,” stated Carol Kong.

The dollar is poised to rise further from this point against all major currencies, as markets begin to recognize that the global economy is set to experience a significant slowdown, she noted. The euro was priced at $1.1554, while the sterling was at $1.3254, reflecting a decline of approximately 0.3% against the dollar following the speech, resulting in a loss of some recent gains. The Australian dollar and the New Zealand dollar, both sensitive to risk, experienced a decline of approximately 0.6%, trading at $0.68865 and $0.5719, respectively. The Japanese yen traded at 159.25, reflecting a weaker position, yet it remains distant from the critical 160 threshold, which is perceived as a key point for potential intervention by Japanese authorities.

With the conclusion of the speech, focus will shift to the upcoming U.S. non-farm payrolls report scheduled for Friday. The expectation for March is a 60,000 increase in jobs, as indicated by the median estimate. A significant decline in the labor market may reignite anticipations for interest rate reductions from the Federal Reserve this year, which have mostly been eliminated as rapidly increasing oil prices linked to the Iran conflict have heightened inflation worries.