A significant surge in risk appetite swept through global markets after US President Donald Trump announced a two-week suspension of planned attacks on Iran, following Tehran's agreement to reopen the Strait of Hormuz and begin negotiations based on a 10-point proposal from Iran [1][2]. Trump made the announcement via Truth.Social, stating, 'We received a 10-point proposal from Iran, and believe it is a workable basis on which to negotiate' [1][2]. Iranian officials confirmed the reopening of the Strait and indicated that negotiations on the proposal will commence on April 10 in Islamabad [1]. The proposal includes provisions for controlled transit through the Strait of Hormuz, ending hostilities against Iran and its allies, and the withdrawal of US combat forces from regional bases [1].
The Japanese Yen (JPY) and Australian Dollar (AUD) both strengthened sharply against the US Dollar (USD) in response to the ceasefire news. The USD/JPY pair dropped 0.75% to near 158.40 during the Asian session, with the Yen outperforming all major currencies, particularly the US Dollar [1]. Simultaneously, the AUD/USD pair surged 1.2% to around 0.7060, with the Australian Dollar also leading gains against the Greenback [2]. Currency heat maps from both sources confirm these moves, showing JPY and AUD as the strongest performers against USD [1][2].
Broader market sentiment was also buoyant, as S&P 500 futures rallied nearly 2.5% to around 6,777, reflecting optimism among investors [1][2]. The US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, fell by 0.54% to near 99.00 [1][2].
Looking ahead, investors are awaiting the release of the US Federal Open Market Committee (FOMC) minutes from the March policy meeting, where the Federal Reserve left interest rates unchanged at 3.50%-3.75% [2]. This upcoming event may further influence market direction, particularly for USD pairs.
CONCLUSION
The announcement of a two-week ceasefire between the US and Iran, along with the reopening of the Strait of Hormuz, has triggered a strong rally in risk assets and safe-haven currencies like the Yen and Australian Dollar. Market sentiment is decisively positive, as reflected in equity futures and broad-based US Dollar weakness. Investors now turn their attention to the upcoming FOMC minutes for further policy guidance.