JPY

Good morning and happy US inflation day to all who celebrate. The dollar is advancing and Treasury yields are edging higher in the run-up to the week’s most important data release at 8:30, which is expected to show prices rising 3.7% in the year to April—the fastest rate since 2023. Most major currencies—including the euro, Swiss franc, Canadian dollar, Japanese yen, Australian dollar, and New Zealand dollar—are down roughly a third of a percent against the greenback from yesterday’s close. Oil prices are on the ascent once again after President Trump called the latest Iranian peace proposal “garbage” and said...

The dollar is advancing against its major rivals, buoyed by Friday’s stronger-than-expected payrolls report and yet another collapse in US-Iran peace talks*. Days after the Trump administration triggered a relief rally in financial markets by dangling a peace offer, Tehran yesterday released a response that reportedly demanded an end to the US naval blockade, a lifting of sanctions, a cessation of military operations, and formal recognition of Iran’s control over the Strait of Hormuz—while deferring the nuclear question entirely. President Trump dismissed these terms as “totally unacceptable”. Front-month crude prices are up 2.5% from Friday’s close—with Brent trading at $103...