
Scotiabank’s FX strategy team highlights Oil as a primary market focus, with recent gains linked to deteriorating US–Iran negotiations and President Trump’s rejection of Iran’s proposal to reopen the Strait of Hormuz. They argue that the extent and duration of rising energy prices are key for central bank policymakers, driving firmer tightening expectations across major developed economies.
"The market’s primary focus remains centered on oil prices, as their latest gains reflect the renewed deterioration in US/Iran negotiations and President Trump’s rejection of last week’s Iranian proposal to reopen the Strait of Hormuz."

"The extent and duration of the rise in energy prices is a key consideration for central bank policymakers, and driving a continued rise in tightening expectations for major developed economy central banks."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)