Natural Gas price retreats on Monday on Iran’s communication.
Iran'S foreign ministry said nuclear weapons have no place in Iran’s nuclear doctrine.
The US Dollar Index eases with markets favoring risk assets over safe havens and cash.
Natural Gas (XNG/USD) retreats from its last week’s peaks near $2.03 after tensions were nearly spill over between Israel and Iran in a direct confrontation. However, the retaliation from Israel on Iran was mild, which already offered markets a sigh of relief on Friday when US equities almost erased an earlier 2% decline before the US opening bell. With new easing communication from Iran on Monday, investors are heading back into equities with the idea that any further escalation will not be at hand any time soon.
Meanwhile, the US Dollar Index (DXY) is weakening on outflows out of safe havens into risk assets. Apart from geopolitics, important US macro data may influence the Greenback’s valuation, as the US Gross Domestic Product (GDP) and the US Personal Consumption Expenditures (PCE) Price Index are set to be released this week. After the hot inflation print from two weeks ago, another higher-than-expected PCE figure could trigger expectations for a rate hike, rather than an interest rate cut as the first move from the US Federal Reserve (Fed).
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