From Marc to Market:
The US deadline on Tehran for re-opening the Strait of Hormuz has subtly shifted until tomorrow. The holiday-thinned market initially bought dollars and oil and took risk off in response to the continued attacks and the escalation of US rhetoric. However, negotiations, apparently led by Pakistan, Egypt, and Türkiye for a 45-day cease fire, have captured the imagination of market participants, even though the negotiators themselves do not appear optimistic.
In quiet turnover, the dollar has given up its early gains, and as the North American session is about. to begin, the greenback is lower against all the G10 currencies and emerging market currencies. US index futures are trading firmer and May WTI is off around 1% but is still near $110. It still seems binary. If the hopes are dashed, risk will come off as the conflict could dramatically escalate....
....MUCH MORE
