From Marc Chandler at Bannockburn Global Forex:
There is one major driver in the capital markets today: A sharp drop in oil prices as the US and Iran have inexplicably not attacked for the past three nights. There is speculation in the press that the US decision was partly motivated by concerns over diminishing supplies of air defenses (e.g., Patriot interceptors) after the two-week assault, but the Trump administration played this down. Crude oil prices are off 7-8% and this encouraged further unwinding of the rise in bond yields seen last week. Equities are rallying today and China’s CXMT chip maker IPO was launched in Shanghai today and it is the largest list company after today’s surge. It is big week for US tech earnings (MSFT and Meta on Wednesday and Apple and AMD on Thursday).
The dollar was marked down initially early Asia Pacific trading but has not made much further progress. The euro continues to struggle to sustain gains above previous support (~$1.14), sterling has not distanced itself convincingly from $1.33 support. The Australian dollar is struggled to sustain the recovery above $0.7000. The US dollar is above CAD1.4100. The dollar pulled back to about JPY163.35 but remains within striking distance of the 40-year high set last week near JPY164....
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