Morning Juice – Europe Session Prep

Good Morning Traders.
It is Wednesday, the 5th of August. Here is what to look out for today.

Sentiment

Optimism grew that an interim agreement to reopen the Strait of Hormuz could be reached after Qatar said a proposal had been drafted, while US and Iranian officials also expressed hope that a deal could restore shipping through the key waterway.

Oil prices steadied following a two-day decline as traders weighed the prospect of the Strait reopening, which would ease concerns over supply disruptions in the Persian Gulf.

In Japan, wage growth remained robust, supported by strong corporate earnings and a tight labour market, reinforcing expectations that the BoJ could raise interest rates again in the coming months.

Meanwhile, Kansas City Fed President Schmid said higher interest rates may still be needed to achieve the Fed’s inflation target, reiterating that price stability remains his primary concern.

Saudi Arabia is also seeking to contain renewed tensions with the Houthis through behind-the-scenes diplomacy, aiming to prevent further attacks from disrupting the Kingdom’s oil industry and broader economy.