27/04/2026 - 07:02 UTCThe USDX opened Monday’s Asian session with mild losses, trading near 98.45 after ending last week with a modest gain of 0.36%. The Greenback faced slight downward pressure following reports that Iran has submitted a new proposal to the U.S. aimed at reopening the Strait of Hormuz and establishing a permanent ceasefire. While these diplomatic overtures offer hope for a de-escalation in the Middle East, President Trump’s decision to cancel a high-level mediation trip to Pakistan—citing that the offer was "not enough"—has kept the index from a deeper retreat. Investors are now transitioning their focus toward Wednesday’s Federal Reserve interest rate decision, where a hawkish repricing remains a possibility if oil-driven inflation persists.
Gold regained some positive traction on Monday, rallying over $50 from its Asian session lows after a difficult prior week where it fell -2.82%. The bullion is benefiting from a slight softening of the U.S. Dollar’s reserve status as markets weigh the latest Iranian peace proposal. Furthermore, a slight easing in energy-related inflation fears has kept the door open for potential Fed rate cuts later this year, supporting the non-yielding metal. However, gains remain capped by ongoing geopolitical risks, including active military operations in Lebanon and the continued naval blockade, which maintain the safe-haven appeal of the Greenback and keep traders cautious ahead of the FOMC meeting.
WTI Oil stabilized near $93.65 during Monday’s early trade, attempting to find a floor after a sharp decline of -11.97% last week. Despite the significant weekly pullback, prices are currently being buoyed by the underlying uncertainty surrounding the Strait of Hormuz. While a new Iranian proposal to end the conflict has surfaced, the lack of a formal U.S. acceptance and the ongoing restriction of transit through the strategic waterway continue to fuel supply shock concerns. Market participants are now awaiting the latest API inventory data on Tuesday, which will provide a vital pulse check on physical demand amidst the current diplomatic stalemate.
Asian markets traded with a mix of cautious optimism and regional adjustments as the new week commenced. Sentiment across the continent is largely being dictated by the fluctuating headlines regarding trade routes and the potential for a diplomatic breakthrough in the Middle East.
In Japan, the Japan 225 showed resilience following recent data on core consumer prices. While inflation remains slightly below target, investors are closely watching the upcoming central bank meeting for any signals of a shift in the domestic interest rate environment. Regional tech sentiment remains sensitive to both global demand and the ongoing geopolitical overhang affecting energy-intensive industries.
In China and Hong Kong, the China SSE, China SZSE, and Hong Kong 50 reflected a "wait-and-see" approach. The markets are balancing the potential for eased regional tensions against the reality of a global economy still grappling with sticky inflation and the high-interest-rate environment set by the main US equity indices. For most of the Asian trading session, participants remained sidelined ahead of the pivotal U.S. monetary policy announcements due later this week.
In corporate developments, robust demand for Intel’s central processors from AI service providers defined the first quarter, with the company successfully selling inventory it had previously written off. This remarkable turnaround led to a massive rally, with Intel stock soaring over 20% last week to surpass its dot-com era peak and push its market valuation above $416 billion.
The surge also lifted rivals AMD and Arm, as investors increasingly believe that AI "inference"—the stage where models answer user queries—could restore the central processing unit to the center of the industry. This shift has even prompted Nvidia to move into the CPU space to address the evolving competition, though its shares remained more stable with a 3.26% gain last week.
Looking ahead, market focus shifts to a heavy slate of central bank decisions from the BOJ, BOC, and BOE due later this week. The primary highlight will be the Federal Reserve's interest rate announcement and FOMC press conference. Crucial U.S. data, including Advance GDP, Core PCE, and the Employment Cost Index, will also be vital in shaping the future outlook for inflation and monetary policy. Investors will also likely pivot their attention toward a high-stakes wave of quarterly results from tech heavyweights, including Alphabet, Microsoft, Amazon, Meta Platforms, and Apple.
EUR/USD traded modestly higher during Monday’s Asian session, rebounding from an opening below the previous close while remaining in negative territory.
The euro remained under pressure amid renewed geopolitical uncertainty, particularly following reports that US-Iran peace talks have stalled. According to Bloomberg, US President Donald Trump canceled a planned delegation visit to Pakistan, where indirect discussions with Iran were expected to take place.
Trump reportedly said Iran’s latest proposal was insufficient, while Iranian President Masoud Pezeshkian reiterated that Tehran would not engage in what he described as “imposed negotiations under threats or blockade.”
Separately, CNN reported that Trump was escorted from the stage by the Secret Service after possible gunshots were reported during the White House Correspondents’ Dinner in Washington, DC, on Saturday. Vice President JD Vance and several cabinet officials were also removed from the venue as a precaution.
The US Dollar found support from renewed safe-haven demand as geopolitical risks intensified. Market sentiment was also weighed down by growing tensions in the Middle East, with Israel and Hezbollah reportedly stepping up attacks despite a US-brokered extension to an existing ceasefire agreement.
Gold prices moved higher during Monday’s session but struggled to sustain momentum after rebounding sharply from the Asian session low. The precious metal drew initial support from renewed hopes of progress in US-Iran relations after reports indicated Tehran had submitted a new proposal regarding the reopening of the Strait of Hormuz, while broader nuclear negotiations were postponed to a later stage. The development placed some pressure on the US Dollar, offering support to bullion prices.
At the same time, softer crude oil prices helped ease inflation concerns and reduced expectations for a more aggressive Federal Reserve policy stance. However, upside momentum remained constrained as investors stayed cautious ahead of the Federal Open Market Committee’s two-day policy meeting beginning Tuesday. Markets are expected to closely monitor the Fed’s guidance for fresh signals on the future rate path amid persistent inflation and resilient US economic data.
Geopolitical risks also remained elevated. Shipping traffic through the Strait of Hormuz reportedly continued to face disruptions due to Iranian restrictions and US naval activity, while Israeli Prime Minister Benjamin Netanyahu said military operations against Hezbollah targets in Lebanon would intensify.
Overall, continued geopolitical uncertainty, softer dollar sentiment, and stronger physical demand may help limit downside pressure on gold, with any intraday pullbacks likely to attract buyers.
Oil prices climbed more than 1% early on Monday as stalled peace negotiations between the United States and Iran, combined with restricted shipping activity through the Strait of Hormuz, heightened concerns over tight global supply conditions.
Prospects for renewed diplomatic progress weakened over the weekend after US President Donald Trump canceled a planned visit to Islamabad by envoys Steve Witkoff and Jared Kushner. The trip had been viewed as part of broader mediation efforts, even as Iranian Foreign Minister Abbas Araqchi arrived in Pakistan.
Market sentiment was further impacted by Trump’s recent comments on Truth Social, where he called for military action against any Iranian vessels laying mines in the Strait of Hormuz and claimed the US had full control over the strategic waterway.
Meanwhile, Iran has largely restricted access through the strait, while Washington has imposed a blockade on Iranian ports. Shipping activity remained subdued, with Kpler data showing that only one oil products tanker entered the Gulf on Sunday. The Strait of Hormuz is a critical route for global energy markets, handling a significant share of the world’s seaborne crude exports, and any disruption continues to add a substantial geopolitical premium to oil prices.
US equities closed mostly higher on Friday, with the US 500 and US Tech 100 finishing at fresh record highs as investors grew increasingly optimistic about the prospects for renewed US-Iran peace negotiations. Strong corporate earnings, particularly from Intel, also lifted sentiment and supported gains in the technology sector.
Market sentiment was helped by easing concerns over energy prices and lower interest rate expectations, which encouraged risk appetite heading into the weekend.
Investors remained cautious over ongoing tensions in the Middle East, particularly around the Strait of Hormuz, where shipping disruptions and military standoffs have continued despite ceasefire extensions involving the United States, Iran, Israel, and Lebanon.
Technology stocks remained among the standout performers, with semiconductor shares leading the advance. The Philadelphia Semiconductor Index extended its longest daily winning streak in more than three decades, supported by upbeat earnings and continued enthusiasm surrounding artificial intelligence-related spending.
Recent earnings from major industry players reinforced confidence in robust demand for AI infrastructure, advanced chip manufacturing, and data center expansion.
Intel was among Friday’s biggest gainers after issuing an upbeat revenue outlook tied to rising AI data center demand. The company’s stronger guidance helped boost the broader tech sector and added to momentum in chip-related stocks.
Overall, strong earnings momentum, resilient technology leadership, and hopes for reduced geopolitical tensions helped keep Wall Street near record levels despite lingering global risks.
The materials contained on this document should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. Any indication of past performance or simulated past performance included in this document is not a reliable indicator of future results. For the full disclaimer click here.
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