All about the peace process – North American Mid-Week Market Update

• Mid-Week review where we dive into the major developments for North American and global Markets
• Global Assets have all pushed for the pricing of a now decisive peace process between the US and Iran after two full months of ceasefire
• Stock Markets have all exploded to new highs, but this also adds to the expectations of a concrete deal ahead

Log in to our mid-week North American Markets overview, where we examine current themes in North America and provide an overview of index and currency performance.

Global asset prices are now being driven by the fast-moving peace process between the United States and Iran.

After two months of a fragile ceasefire, the situation has quickly moved from a tense standoff to real progress toward a formal agreement. This shift is causing major investors in North America and around the world to move their money in response.

The main reason for this big change came on Monday, when President Trump announced a Memorandum of Understanding (MoU) between the two countries – For those who haven’t heard the term, an MoU is a non-binding agreement that sets out the basic terms and expectations for a future treaty.

This agreement gives both sides 30 days to fully reopen the important Strait of Hormuz and includes economic concessions to Iran to help the talks succeed.

Even though there were a few minor military incidents overnight, Wall Street is largely ignoring them. Traders are focused on the Memorial Day announcement and believe the push for peace is strong enough to overcome small setbacks.

This breakthrough has had a major impact on energy markets. WTI Crude Oil prices have dropped sharply, falling back to the low $90 range.

Prices have stayed around these lows all week, showing that a large part of the war anxiety pricing is already fading.

As energy costs fall and supply chain risks fade, major North American stock indices have surged to new record highs, particularly Nasdaq reaching 30,000.

Investors are optimistic right now, but this rapid rise means there is no room for mistakes in the peace process. The market is now counting on a clear and successful final agreement.

Let's dive right into our Mid-Week North American Markets recap.

Read More:

• Cryptos fail to generate momentum continuous confusion – BTC and Ethereum (ETH) Technical Outlook
• Markets are sending mixed feelings on the peace Deal – Dow Jones, Nasdaq and S&P 500 Intraday Levels
• The Dollar contradicts the peace trade – EUR/USD, GBP/USD & Dollar Index (DXY) overview

Stock Indices are once again exploding higher, with Japan putting the most impressive catch up to its past week losses and Nasdaq following close.

Overall, the rebound is global with the Strait of Hormuz new largely soothing investors.

The action in the US Dollar is quite contradicting in recent days, but is starting to tilt more to one side.

After bouncing above 99.00 last week, the DXY led a few tests within the 500 pips region (99.00 to 99.50) and after yesterday's bounce, sellers are appearing at the 4H 50-period MA indicating a failed rally – More developments will be awaited to see how this really unfolds.

Check out our past day US Dollar analysis to learn more:

The Dollar contradicts the peace trade – EUR/USD, GBP/USD & Dollar Index (DXY) overview

The Dollar is pursuing its rebound against FX Majors but is currently losing some steam as the conflict looks to be ending soon – Crude Oil maintains high correlation to the petrodollar, hence traders will need to continue to observe this development.

The Canadian Dollar is losing quite some momentum against most of its FX peers except for the Aussie Dollar, with Crude Oil lower which directly affects the Loonie.

The reopening of the Strait of Hormuz may diminish Canadian Oil export demand.

For those following the weekly update, you may have tracked one of the clearest patterns in FX in recent times:

USD/CAD maintains its 1.3550 to 1.3950 range, with the action continuing to rebound within as we speak, approaching the upper end of it – Watch reactions to the 1.3850 micro resistance.

Levels to place on your USD/CAD charts:

Resistance Levels:

• 1.3850 Resistance
• 1.39 to 1.3925 Support turned resistance (range highs)
• 1.3950 Range high resistance

Support Levels:

• 1.38 mini-Pivot +/- 15 pips
• 1.3750 Momentum Support
• 1.3630 to 1.3660 Key Support now Pivot (4H 50-period MA)
• 1.3550 Main 2025 Support (Range Lows)
• 1.35 Key Psychological Support
• End-January Lows 1.34820

It is the final Mid-Week update, so thank you for all who enjoyed the posts since a bit more than a year – I wish you success in the World of Trading and a long life in Markets.

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Safe Trades!

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