Planned negotiations between delegations from the U.S. and Iran failed to actually take place, but President Donald Trump announced the ceasefire would be extended without deadline in order for diplomacy to continue. Overnight trading sessions across the globe seemed to mostly welcome the element of armed conflict fading away, with Israel and Lebanon also in talks, but without details the markets remain at the mercy of headlines and breaking news in a market that has become accustomed to being more reactionary.

Meanwhile, the ongoing confirmation hearing for Fed Chair nominee Kevin Warsh has not given much to markets in terms of a person ready to foment looser monetary policy. Explaining his background and credentials, Warsh also defended his independent thinking and stated he has not been directed to conduct any particular agenda when it comes to using the Fed’s tools. Nevertheless, he said the central bank needs a “new framework,” a sign that some changes could come from his arrival as top official.

With disrupted traffic in the Strait of Hormuz, any potential updates about the blockade would certainly move the needle and rattle investors as well as traders. Without any major data points today, we will look forward to tomorrow’s busier schedule featuring April’s S&P Global Composite Purchasing Managers Index and Initial Jobless claim for week and one-month period.

What to Watch This Week…

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The complete Economic Calendar can be found here.

EUR ⇓

The Euro is currently hovering around its weakest level in around two weeks after some pessimism coming out of the monetary union’s biggest economy. Indeed, Germany seems to be preparing for tough times with energy as conditions worsened for companies and investors in the aftermath of the shutdown of the Strait of Hormuz. German officials believe the impact will be severe and slashed their growth forecast for 2026 from 1.0% to half at 0.5%. As diesel rises, prices have to increase across the board in an environment already plagued by stagnant demand. Q4 Gross Domestic Product for the Euro-zone stood at just 0.2% mostly helped by German progress. Q1 GDP figures will be out on April 30th.

MXN ⇓

The Mexican has climbed 2.6% since the beginning of April but has started to cede a bit of value as the economic disturbances of the Middle East turmoil have not gone away. Banxico officials, who have been questioned about cutting interest rates at their last meeting, seem to have jumped ahead of other central bankers who are now worried about the negative effects from the conflict as trade has been absorbing the shocks of other pressures such as tariffs. We shall see if February Retail Sales tomorrow as well as Consumer Price Index numbers from the last few weeks can make a difference and help MXN sustain recovery experienced thus far this month.