Published: 2026-05-27T12:48:11.000Z
USD, EUR/CAD,NOK/SEK,AUD/NZD flows: Oil slips back further on initial draft of a provisional...
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Oil continues to pull back on further 'initial draft MoU' headline
Tending to play to the o/n move towards corrective ToT cross trades
USD off a little, but recent positioning more balanced
More headline driven action with crude now off $4-5, stretching the early May lows, on Iran TV suggestions that it has a draft of the initial unofficial framework for the MoU with the US, which includes restoring traffic through to Strait to pre-war levels within a month and that it would become a binding security council resolution if the deal is finalised.
All very ‘initial, of a draft, of a provisional’ of course. But it keeps the market moving towards an eventual if fragile truce and exit ramp scenario, if one fraught with hazards.
The talk and the price action tending to go with the grain of some of the overnight action anyway in terms of cutting some of the overbought ‘oil ToT crosses’, while being a bit more cautious on trimming back on USD-majors generally where positioning has recently been more balanced rather than particularly long USD.