Safe-haven currencies pull back as investors look past U.S.-Iran tensions

• The Japanese yen and Swiss franc pulled back from recent highs on Tuesday as investors judged that the chances of an all-out conflict between the United States and Iran had fallen. 
• The safe-haven yen fell from a three-month high versus the dollar, although sentiment remains fragile due to continued worries about a further deterioration in relations between the U.S. and Iran.
• The U.S. currency, the world’s most liquid, is often bought in times of market flux, but its performance has been mixed in recent sessions - slightly better-than-expected euro zone business survey data on Monday supported the euro.
• The euro was little moved by data showing inflation in the euro zone had accelerated in December and retail sales were stronger than expected.
• Recent survey data has pointed to improving investor and business confidence in the euro zone.

 (Source: Reuters)