The DXY Index ended overnight barely changed from Friday’sclose of 98.5, supported by a fresh record high of 7173.91 in the S&P Index and a 3.9 bps increase in the US Treasury 10Y yield to 4.34%. The DXY had earlier declined to 98.2 during the Asian and European sessions on reports that Iran had submitted a new proposal via Pakistani mediators aimed at reopening the Strait of Hormuz in exchange for lifting the US naval blockade and decoupling nuclear talks for a later date. The proposal comes ahead of today’s third Democrat-sponsored War Powers Resolution vote in the House of Representatives. Even if the House passes the resolution, the Senate has already blocked five similar attempts. However, a House passage would create immense political pressure on the Trump administration ahead of May 1, or the 60-day clock’s expiry, to conduct military operations without congressional approval.
Commodity-driven currencies, AUD and NZD, led the risk-on rally, each appreciating 0.5% against the USD. The futures market is pricing in a 78.5% chance of a third consecutive rate hike at next week’s Reserve Bank of Australia meeting. As the highest-yielding G10 currency this year, the Oz has become the top currency with 7.7% YTD gains; the MYR was a distant second with 2.8% YTD gains. CAD appreciated less by 0.3% on expectations for the Bank of Canada to remain in a wait-and-see mode on war-driven inflation, with the OIS market looking at a later hike in 4Q26. The KOSPI stole the spotlight with a stellar 2.2% surge to a fresh record high of 6615, with the KRW appreciating a fourth consecutive session by 0.1% to 1474.53 per USD.
Quote of the Day
“If we open a quarrel between past and present, we shall find that we have lost the future.”
Winston Churchill
April 28 in history
In 1925, Winston Churchill announced the UK’s return to the gold standard, aiming to restore London's financial supremacy and stabilize the economy.
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