Headlines:
- US, Iran technical teams still on course to meet in Doha in the coming days – report
- Oil prices hover around pre-war levels as focus turns to the US data and the Fed
- Intervention fears are capping the USD/JPY upside as traders await the key US data
- Precious metals struggle to find much comfort, gold down by over 1% on the day
- ECB policymaker Kazaks says probability of negative scenarios has fallen massively
- BoE’s Pill: Monetary policy hasn’t been restrictive enough over the last few years
- Spanish inflation keeps more stubborn in June, preliminary estimates show
- Deutsche says to fade any dollar strength going into month-end
Markets:
- WTI crude up 1% to $69.95
- European equities little changed
- S&P 500 futures up 0.9%, Nasdaq futures up 1.3%
- NZD leads, JPY lags on the day
- US 10-year yields flat at 4.37%
- Gold down 1.3% to $4,035
It was a quieter start to the new week, following the weekend developments. The US and Iran exchanged strikes again before calling a truce, just so that technical talks were able to resumed in Doha starting tomorrow.
But in the meantime, it is a timely reminder that any reopening in the Strait of Hormuz will not be so straightforward.
Oil prices climbed a little as such, with WTI crude up 1% to $69.95 as we get things going on the week.
As a reminder, it will be a holiday-shortened week though in the run up to Independence Day in the US. However, things will get a bit more hectic in the days to come with lots to unpack as highlighted here.
In the equities space, US tech shares are looking for a more solid bounce back after a torrid showing last week. S&P 500 futures are up 0.9% with Nasdaq futures up 1.3% on the day.
As for major currencies, the mood is more guarded still with the dollar keeping lightly changed ahead of month-end trading as well. EUR/USD is up 0.2% near 1.1400 with large option expiries in focus but USD/JPY is up 0.1% to 161.80 levels in continuing to flirt with potential intervention threats near the 2024 high.
In other markets, 10-year yields in the US are flattish at 4.37% while precious metals are dropping with gold down 1.3% to $4,035 on the day.
All eyes will stay on US-Iran developments for now, with month-end and quarter-end set to keep things a little bit more messy. All that before the focus turns to Fed chair Warsh’s appearance on Wednesday and then a special US non-farm payrolls release on Thursday this week.
This article was written by Justin Low at investinglive.com.
