As a memorandum of understanding is said to be close but not done as Iran’s supreme leader Khomenei and Pres. Trump have not approved, the markets are still hopeful.
US stocks have moved higher led by the NASDAQ index which is up 0.52%. The S&P index is up 0.43%. The Dow industrial average is up seven points and also on pace for a record close for the day.
Crude oil is up about $0.62 at $89.40, but while off the high price of $92.52.
US yields have moved back into negative territory:
- 2 year yield -1 basis point of 4.022%.
- 5-year yield -2.1 basis points at 4.159%.
- 10 year yield -2.2 basis points at 4.459%
- 30 year yield -2.0 basis points at 4.990%
The benchmark levels of that need to be broken in and stay broken include 4.0% for the two year, 4.5% for the 10 year and 5.0% for the 30 year .
Looking at the USD, the greenback has moved sharply to the downside:
EURUSD: The EURUSD moved back above both the 200-hour moving average at 1.1623 and the 100-hour moving average at 1.1629, shifting the technical bias back to the upside. The break higher has helped push the pair back into a key swing area between 1.1655 and 1.1663 — a zone that previously acted as resistance.
If buyers can extend above 1.1663, the next upside target comes in at the 200-day moving average near 1.1681. Staying above the hourly moving averages keeps the buyers more firmly in control, while a move back below those levels would weaken the bullish momentum.
USDJPY: The USDJPY moved lower and tested the rising 100-hour moving average at 159.19, with the session low reaching 159.19. Also in focus is the 200-hour moving average, currently at 159.09. Buyers leaned against that key support level on Tuesday, helping to keep the broader bullish bias intact.
For sellers to start gaining more control, the price needs to break below — and stay below — the 200-hour moving average
