investingLive European FX news wrap: Oman’s proposal on Hormuz strait gets regional backing
- Silver pulls back as hedging ahead of crucial Fed decision offsets US-Iran ceasefire relief
- USD/CHF breaks the August 2025 high after reports the SNB will stay on hold until the end of 2027
- QatarEnergy said to extend force majeure for European buyers
- FOMC meeting risks to favour the dollar this week?
- USD/JPY consolidates around four-decade high as traders await the Fed and BoJ decisions
- The S&P 500 eyes relief rally if the Fed avoids hawkish surprise and US-Iran ceasefire holds
- French household confidence extends recovery into July
- Oman proposal to Iran on Strait of Hormuz management has regional backing – report
- What are the main events for today?
- FX option expiries for 28 July 10am New York cut
- Japan core inflation estimated at 2.7% in June, similar to May – BOJ data
- Gold Traders Watch Two Key Catalysts: The Middle East and the Federal Reserve
- A bloodbath in Asia sets the stage for European morning trade today
- RBA’s Bullock: I don’t know what board will decide at the next meeting
- Nasdaq analysis shows another 1,000 points down (see video)
It’s been a pretty empty session in terms of data and news releases. The highlight of the session was a Reuters report saying that Oman’s proposal to Iran on Strait of Hormuz management had regional backing.
The proposal says that Iran will not exercise sole control of the strait and that it will be a regional mechanism to manage the strategic waterway with voluntary fees. If Iran were to agree, it would remove a significant hurdle to a more lasting peace and we can expect oil prices to ease back to July lows.
In terms of market moves, yesterday’s strength in the US dollar and weakness in stocks and precious metals extended further although the momentum waned. The price action seems to be driven more by hedging/deleveraging activity ahead of tomorrow’s FOMC decision rather than fresh Middle East news.
In the American session, the only highlight is the US Consumer Confidence which is expected to tick higher to 92.4 vs 91.2 prior. The data won’t change anything for the Fed, so the market reaction will likely be muted unless we see big deviations.
Traders will also keep an eye on Trump’s meeting with Netanyahu which is expected at 15:00 GMT/11:00 ET. Positive or negative remarks about Iran could be market moving.
This article was written by Giuseppe Dellamotta at investinglive.com.