The U.S. Dollar is down against it’s peers this morning on renewed hope that the war in Iran will be ending and has erased all gains made since the conflict began in late February.
The U.S. has issued a new proposal to end their nearly 10-week war with Iran, who is expected to reply via intermediary Pakistan within 48 hours. The U.S. proposal, if accepted, would result in the gradual reopening of the Strait of Hormuz and lifting of the U.S. blockade, with negotiations surrounding Iran’s nuclear program to come at a later date. The proposal also includes provisions that would allow for the lifting of sanctions on Tehran. Brent and WTI crude oil both plunged nearly 10% on the news but notably remain above their pre-war levels.
What to Watch This Week…
- Monex USA Online is always open
JPY ⇑
The Japanese Yen is the G10’s biggest gainer against the Buck this morning, surging to a 10-week high over the course of half an hour late in the Asian trading session. Despite Japanese markets being closed today and monetary authorities declining to comment, Traders are convinced that the move is not the result of thin liquidity, with some going as far as to state that the move has every mark of an intervention event. Japanese authorities have been very clear that they were prepared to step into markets to support the Yen, and there is no other apparent reason for a move of this magnitude. The obvious result is Traders pointing fingers in the direction of the Ministry of Finance.
