Summary

• The dollar’s losses in the North American afternoon yesterday have been unwound as hopes that a framework for negotiations between the US and Iran have faded again. The US dollar is consolidating in narrow ranges with a slightly firmer bias.
• The euro was sold to a new marginal low since April 7 yesterday in what appeared to be a response to the stronger-than-expected US May PMI. It is trading with a heavier bias between about $1.1595 and $1.1620.
• Since the BOJ’s intervention on April 30, the yen has strengthened in only three of the 15 sessions coming into today. The dollar rose to a new high for the month yesterday near JPY159.35. It has been capped at JPY159.15 today but has not traded below JPY158.90.
• The rally to new highs for the week in the US S&P 500 and Nasdaq set the tone for today’s gains in Asia-Pacific and European equities. Nearly all the markets are higher today.
• Europe’s Stoxx 600 is rising for the fifth consecutive session, for the first time since last November. US index futures are around 0.2-0.3% firmer.

The dollar’s (DXY) losses in the North American afternoon yesterday have been unwound as hopes that a framework for negotiations between the US and Iran have faded again. A drone strike on the UAE, ostensibly from

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