CNY

Good morning. The dollar is steamrolling its major rivals for a second consecutive session as geopolitical risks and inflation fears reinforce one another. With the conflict in the Middle East showing few signs of easing, and shipping through the Strait of Hormuz effectively halted, traders are unwinding cross-border positions and retreating to the world’s deepest and most liquid financial markets in a pattern known to currency traders as the “dollar smile”*. Ten-year Treasury yields are flirting with the 4.10 threshold after their sharpest single-session rise since October, North American equity futures are setting up for a bruising loss at the...

Good morning. The dollar is advancing against most of its major counterparts and measures of implied currency volatility are tracking near historic norms as foreign exchange traders downplay tariff risks and shrug off signs of a shift in investor sentiment around the US technology sector. US Customs began collecting a 10-percent tariff on goods not covered by exemptions this morning—below the 15 percent threatened by President Trump in a weekend social media post. The White House reportedly remains committed to the higher levy, which would raise import costs on products from a number of key trading partners including Japan, the...