The US dollar is weakening following an interim deal between the US and Iran to reopen the Strait of Hormuz, easing energy-related geopolitical risks. Meanwhile, the Japanese Yen struggles as short positions mount ahead of a highly anticipated BoJ meeting.
Key Takeaways
- 1.An interim US-Iran agreement to reopen the Strait of Hormuz is exerting downward pressure on oil prices and the US dollar.
- 2.The Japanese Yen remains under pressure with leveraged funds holding record short positions despite expectations of a BoJ rate hike.
Table of Contents
- US-Iran deal encourages weaker USD
- USD: A deal is finally reached to end conflict and reopen the Strait of Hormuz
- JPY: Short yen positions continue to increase ahead of BoJ meeting
- KEY RELEASES AND EVENTS
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Authors
Lee Hardman
Securities
USDJPY
Themes
Geopolitical De-escalationCentral Bank Policy DivergenceEnergy Market Normalization
Regions
GlobalAsia PacificMiddle EastUnited StatesIranJapan