From Marc to Market:
Hopes that the war on Iran is nearly over and that the Strait of Hormuz will open soon and ease the supply shock that has rippled across the global markets continues to underpin risk appetites today. The AI boom and the infrastructure and defense spending in Europe are also contributing. The dollar is mostly softer, oil prices lower and yields extending their pullback.
Preliminary data lends credence to claims that Japanese officials intervened again yesterday to strengthen the yen. The initial estimate suggests it slightly few dollars[sic[ than it did on April 30. Norway’s central bank surprised the market with a rate hike earlier today, and the swaps market is pricing in another. Sweden’s Riksbank stood pat after the softer than expected CPI reported yesterday....
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Here's his comment on the yen:
• The dollar plummeted quickly yesterday amid speculation that the BOJ stepped back in as the market approached JPY158. Within minutes, the greenback had been sold to almost JPY155.00. The preliminary estimate is that the BOJ sold around $30 bln. The initial rebound carried it back slightly through JPY156.55. European and North American participants pushed it down to around JPY155.60 before bids returned but the market seemed reluctant to push it above the JPY156.60 area ahead of the return of Japanese markets today. It has been confined to about today between JPY156 and JPY156.55. Options for $1.5 bln at JPY156 expire today.
