From Marc Chandler at Bannockburn Global Forex:
The breakdown of talks between the US and Iran initially warned of a risk-off session, but a new Iranian proposal appears to have revived the hopes of a resolution. The US dollar is trading softer and equities in Asia Pacific and Europe rose while bond yields were under pressure. The front month crude oil contracts are trading around $2 a barrel higher.
There are two other developments to note. First, with the Justice Department suspending its probe into the Federal Reserve, Warsh is set to be confirmed as the next Fed chair on Wednesday. When Justice Department made the announcement, the implied chances of a Fed cut by the end of the Beijing’s shadow trade with Iran, sanctioning shipping vessels and a large Chinese refinery. Lastly five G10 central banks meet this week, starting the BOJ tomorrow. None are expected to adjust policy, but hawkish holds are anticipated....
....MUCH MORE
