From Marc Chandler at Bannockburn Global Forex:
There is one overreaching development that is driving the capital markets today. War. Hostilities between the US and Iran have intensified. At the NATO summit in Türkiye, President Trump has said the ceasefire is over. Oil prices have jumped. Benchmark bond yields have risen and stocks sold. The dollar itself is mixed in the G10 but is mostly stronger against emerging market currencies.
As widely anticipated, the Reserve Bank of New Zealand hiked its overnight cash rate target 25 bp to 2.50%. The New Zealand dollar is the strongest among the major currencies (~0.35%) followed closely by the oil-sensitive Norwegian krone. The Japanese yen is the weakest, off about 0.2% to approach last week’s 40-year high. President Trump told expressed frustration with NATO members over not supporting his desire for Greenland and renewed his call to end trade with Spain for its lack of sufficient military spending and its lack of support for the war on Iran. The US runs a trade surplus with Spain....
....MUCH MORE
