Risk Appetite Surges on US-Iran Peace Framework

Reports of a framework peace agreement between the United States and Iran have spurred a significant risk-on mood across global markets, driving US stock futures higher. This development has caused crude oil prices to fall to three-month lows amid easing supply concerns and prospects of the Strait of Hormuz reopening.

Precious Metals Advance on Weaker US Dollar

Gold and silver prices rallied as the US Dollar weakened in response to the improved risk sentiment, which diminished the dollar's safe-haven appeal. The decline in the US currency provided a tailwind for precious metals, with gold extending a rebound from recent lows and silver also posting a notable increase.

Diverging Central Bank Policies Influence Currencies

Central bank outlooks are creating divergent paths for major currencies, with a busy week of policy meetings ahead. Despite an expected rate hike from the Bank of Japan, the Yen has found limited support, while the British Pound faces risks related to Bank of England policy and domestic politics. In the Eurozone, some ECB officials continue to signal the need for further rate hikes even as geopolitical tensions ease.

Euro Strengthens Amid Downbeat Regional Data

The Euro has gained against major currencies, including the US Dollar and British Pound, supported by the broad risk-on market mood. This strength has persisted despite Eurozone Industrial Production for April rising less than expected, as the positive sentiment from geopolitical de-escalation offset the weaker economic data.