From Marc Chandler at Bannockburn Global Forex:
News that the US rejected Iran’s counter-proposal is set the tone for today’s session. The dollar is mostly firmer, though the Canadian dollar and Norwegian krone are slightly firmer. Equities are mostly lower, yields, higher, alongside oil. Appreciating the seeming reluctance of the US to renew “kinetic” operations, the North American market may view the US position as predictable negotiation tactics.
This week, US Treasury Secretary Bessent is in Tokyo. He has indicated that the weak yen is on the agenda. President Trump will be in Beijing later this week. The Trump-Xi meeting is highlight, and we have argued to keep expectations modest. Meanwhile, UK Prime Minister continues to fight for high political future after Labour’s drubbing in last week’s local elections. His speech earlier today does not appear to have done the trick. Sterling and Gilts are lower than before the speech....
....MUCH MORE
