JPY

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...

The dollar is trading near its lowest levels in months, bond yields are plunging, and equity indices advancing after Axios reported that Washington and Tehran are nearing an agreement to end the war in the Middle East. Both global crude benchmarks are down more than 9%, with Brent trading below $100 and West Texas Intermediate nearing $90, and most major currencies are climbing against the greenback as traders scale back expectations for an energy price-induced shock to economies with heavy import exposures. A US-Iran deal could reshape the conflict and reduce risk across the global economy. According to Axios, Jared...