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The Iranian Foreign Ministry has stated that a potential agreement between Oman and the Islamic Republic does not mean that the Strait of Hormuz is secure or open. Iran and Oman have been talking about a temporary passage deal in the Strait of Hormuz, with Gulf officials saying a “50-50 chance” of a deal by Friday. The Americans claim the waterway will open “very soon.” Tehran denies talks with the US.
Crude Oil was down slightly on Wednesday and appears to be somewhat stagnant in early Asian trading, and participants are waiting for some kind of clarity or confirmation.
Gold broke out during the Wednesday session, as the $4200 level has been overcome. The market has been sideways for a few months, but traders are starting to bet on the yellow metal picking up momentum again. The market finished near the high, and early Asian trading is flat, sitting right at the 200 Day EMA. Falling rates and a softer US dollar will continue to be the potential catalyst.
The AUD/USD pair traded just above 0.7050, the highest level since mid-June. Major Australian banks all forecast a 4.35% interest rate hold at the next meeting of the RBA. Domestic Aussie data is the strongest it's been since January, but not enough to get traders looking for a hike on the 11th.
The USD/MXN continues to see downward pressure on Wednesday, as fresh hopes of de-escalation in the Persian Gulf have traders looking to extend risk. Interest rates dropping in America have widened the gap in favor of Mexico.
Fed Governor Lisa Cook backs keeping rates on hold in America, as she awaits more data. Inflation risks outweigh job market risks, according to her latest statements.
The Weekly Unemployment Claims figures will be the only announcement on tap of consequence today, but may be subdued due to the Non-Farm Payroll announcement on Friday.
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