From Marc Chandler at Bannockburn Global Forex:
The re-intensification of the Middle East war initially roiled the markets but as the session progressed, oil has pulled back and equities have stabilized. August WTI briefly traded above $75 and is now around $73.50, which is still nearly 3% higher. Most of the large Asia Pacific equity markets were under pressure but Europe is little changed and US index futures are mixed.
The US dollar is mixed. The Japanese government reportedly will not formally overhaul the allocation of the government’s pension funds, despite what it may have appeared like before the weekend, and the yen and JGBs are softer today. Since last week’s hawkish hold by the Reserve Bank of New Zealand, the Kiwi has been the strongest in the G10 and remains so today. Undaunted by the heightened volatility and the risk of further disruption of commerce through the Strait of Hormuz, the PBOC set the dollar’s reference rate at a new three-year low....
....MUCH MORE
