We are trying to keep the ceasefire in order to give diplomacy a chanceContradictory messages by the US have made us reluctant about their real intentions on talksAll vessels can pass through Strait of Hormuz except those at war with usVessels wanting to pass should coordinate with Iran navyWe are making the necessary arrangements in coordination with OmanThe situation around the Strait of Hormuz is very complicated and we are trying to helpInterested in continuing energy business with IndiaWe understand consequences of sanctions imposed by USThe comments aren’t anything new and mainly reaffirm the existing status quo. With US president Trump making his visit to Beijing this week, the war with Iran took a bit of a backseat for two days. But now with that visit ending, we’re back to continuing the focus on the conflict. The most damning remark above is Iran’s foreign minister basically saying “we have no trust in Americans”.Trump’s visit also concludes with no commitments or promises by China to try and help mediate the situation. So, that sort of wipes out any small glimmer of hope of there being a positive development this week.As such, markets are now taking a turn for the worse in the final stretch of the week. Oil prices have ramped higher alongside bond yields and that is now weighing heavily on the risk mood ahead of the weekend.WTI crude (June contract) is up 3.7% to $104.95 with Brent crude up over 3% to $109.06 on the day. This article was written by Justin Low at investinglive.com. 🔗 Source

South Korea Export Price Growth (YoY) rose from previous 28.7% to 40.8% in April 🔗 Source 💡 DMK Insight South Korea’s export price growth jumping to 40.8% is a big deal for traders: it signals inflationary pressures that could ripple through global markets. This spike in export prices suggests that demand for South Korean goods is strong, but it also raises concerns about cost-push inflation. For forex traders, this could mean volatility in the South Korean won as the Bank of Korea may need to adjust interest rates to combat inflation. Watch for how this impacts USD/KRW; a sustained rise in export prices could weaken the won if the central bank opts for a more hawkish stance. Additionally, commodities linked to South Korea’s exports, like semiconductors and petrochemicals, might see price adjustments as well. On the flip side, if this growth is seen as unsustainable, it could lead to a correction in export-driven stocks. Keep an eye on the upcoming economic indicators and central bank statements for further clues. The immediate focus should be on how the market reacts to these numbers in the coming weeks, especially around key resistance levels in USD/KRW. 📮 Takeaway Watch USD/KRW closely; a sustained rise in export prices could lead to volatility and potential central bank action.

South Korea Import Price Growth (YoY) climbed from previous 18.4% to 20.2% in April 🔗 Source 💡 DMK Insight South Korea’s import price growth hitting 20.2% is a wake-up call for traders: inflation pressures are intensifying. This spike in import prices can signal rising costs for consumers and businesses alike, potentially leading to tighter monetary policy from the Bank of Korea. For traders, this means keeping an eye on the South Korean won and related assets, as currency volatility could increase. If inflation continues to rise, we might see a shift in interest rate expectations, which could impact forex pairs involving the won. Watch for key resistance levels around recent highs, as a break could lead to further downside in the won against major currencies. On the flip side, while this news may seem bearish for the won, it could also present buying opportunities if traders anticipate a corrective bounce after an initial reaction. Keep an eye on the upcoming economic indicators and central bank comments for clearer direction. 📮 Takeaway Monitor the South Korean won closely; a break above recent highs could signal further volatility, especially if inflation pressures persist.

Standard Chartered economists Christopher Graham and Carol Liao discuss the EU’s widening trade deficit with China, highlighting the autos sector as a key example of the imbalance. 🔗 Source 💡 DMK Insight The EU’s growing trade deficit with China is a wake-up call for traders in the autos sector. With the autos industry being a significant contributor to this imbalance, traders should keep an eye on how this affects European car manufacturers’ stock prices. If the deficit continues to widen, it could lead to increased scrutiny on trade policies and tariffs, impacting supply chains and production costs. This situation might also ripple into related sectors like commodities and raw materials, which are crucial for manufacturing. Watch for any policy announcements or trade negotiations that could shift market sentiment. Additionally, keep an eye on technical levels for major auto stocks; a break below key support levels could signal deeper issues ahead. The real story is how this trade dynamic could reshape investor confidence in European equities, especially in the automotive space. 📮 Takeaway Monitor the EU’s trade policy developments and key support levels in auto stocks, as a widening deficit could trigger volatility.

The USD/JPY pair advances toward the 158.30 region on Friday, reaching its highest level in nearly two weeks as the United States (US) Dollar (USD) strengthens following resilient US economic data and rising Treasury yields. 🔗 Source 💡 DMK Insight The USD/JPY’s climb toward 158.30 signals a strong dollar backed by solid US economic data, and here’s why that matters: With rising Treasury yields, the dollar’s appeal increases, making this pair a focal point for traders. A break above 158.30 could trigger further bullish momentum, potentially pushing it toward the next resistance level. Keep an eye on the US economic indicators, as they could dictate the dollar’s strength in the coming days. If yields continue to rise, expect the USD/JPY to react positively, while any signs of economic slowdown could reverse this trend. Additionally, the correlation with US equities could mean that a stronger dollar might weigh on stock prices, creating a ripple effect across markets. But don’t overlook the potential for a pullback if the pair fails to maintain momentum. Watch for key support around 157.50; a drop below this level could signal a shift in sentiment. Overall, the next few trading sessions will be crucial for determining the USD/JPY’s trajectory, so stay alert for economic releases and yield movements. 📮 Takeaway Watch for a break above 158.30 in USD/JPY; if it holds, bullish momentum could accelerate, but a drop below 157.50 may signal a reversal.

AUD/USD eased 0.5% on Thursday, pulling back from four-year highs as the session drifted steadily lower through the afternoon. The pair had been pressing against the 0.7280 area, the strongest territory since June 2022, and bullish momentum waned after the recent run higher. 🔗 Source 💡 DMK Insight AUD/USD’s 0.5% pullback from four-year highs signals a potential shift in momentum. The pair had been testing the 0.7280 level, a significant resistance point not seen since June 2022. This recent retreat suggests that bullish sentiment may be losing steam, which could prompt traders to reassess their positions. If the pair fails to maintain above this level, we might see a deeper correction, potentially targeting the 0.7200 support zone. Keep an eye on economic indicators from Australia and the U.S. that could influence this pair, especially any shifts in interest rate expectations. On the flip side, if AUD/USD manages to reclaim the 0.7280 level, it could reignite bullish momentum, leading to further gains. Watch for any news or data releases that could act as catalysts for volatility. The immediate focus should be on how the pair reacts around the 0.7200 support in the coming sessions. 📮 Takeaway Monitor AUD/USD closely; a failure to hold above 0.7280 could lead to a drop towards 0.7200.

John Williams, President of the Federal Reserve (Fed) of New York, spoke on Thursday and said that the job market has stabilized, acknowledging that he is not surprised to see near-term inflation expectations rise. 🔗 Source 💡 DMK Insight Williams’ comments on job stability and rising inflation expectations are crucial for traders right now. With the Fed’s focus on employment and inflation, this could signal a shift in monetary policy. If inflation expectations continue to rise, we might see the Fed tightening rates sooner than anticipated. This is particularly relevant for forex traders, as a stronger dollar could emerge if the Fed acts decisively. Keep an eye on the USD pairs, especially against the EUR and JPY, as they could react sharply to any hints of rate changes. Plus, the job market’s stability might lead to increased consumer spending, which could further fuel inflation. On the flip side, if inflation expectations are seen as transient, markets might shrug off these comments. Watch for any shifts in market sentiment, especially around key economic releases or Fed meetings in the coming weeks. The immediate focus should be on how these comments influence the dollar’s strength and related asset classes. 📮 Takeaway Monitor USD pairs closely; rising inflation expectations could lead to a stronger dollar and potential rate hikes from the Fed.