The St. Louis Fed President Alberto Musalem said that an easing bias in the Federal Reserve’s monetary policy statement is “no longer consistent,” he said in an interview with Bloomberg TV.

The Dow Jones Industrial Average (DJIA) sat a hair higher into the New York afternoon, up roughly 0.10% on the day, which sounds respectable until you look sideways at the S&P 500 (+0.55%) and the Nasdaq (+0.79%) and notice the blue chips spent the session bringing up the rear.

The Greenback resumed its decline on Thursday, coming under sudden selling pressure in the wake of news citing the US and Iran have clinched a deal that could eventually end the conflict in the Middle East.

United States 7-Year Note Auction: 4.29% vs 4.175%

The Australian Dollar advances some 0.25% on Thursday on reports that Iran and the US reached a deal, as economic data in the US revealed that the economy grew at a slower pace than projected. At the time of writing, the AUD/USD trades at 0.7158, after bouncing off daily lows of 0.7097.

West Texas Intermediate (WTI) crude Oil sees sharp two-way price swings on Thursday as traders track rapidly changing US-Iran developments. At the time of writing, WTI is trading little changed around $88 per barrel after hitting an intraday high of $91.27.

VanEck launched the VanEck BNB ETF on Thursday, providing access to Binance’s native token BNB. The spot Exchange-Traded Fund (ETF) has been listed on NASDAQ under the ticker VBNB.

United States EIA Crude Oil Stocks Change above forecasts (-5M) in May 22: Actual (-3.327M)

United States 4-Week Bill Auction up to 3.63% from previous 3.61%

The St. Louis Fed President, Alberto Musalem, crossed the wires on Thursday, and said that rate hikes may be needed if inflation doesn’t ease, at a Central Bank of Iceland and Northwestern University economic conference in Reykjavik.

The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, trims earlier gains on Thursday as traders react to fresh geopolitical headlines surrounding US-Iran negotiations.

The British Pound pares some of its earlier losses and edges up by 0.08% amid reports that the US and Iran reached a deal, pending confirmation from US President Donald Trump, according to Axios. At the time of writing, the GBP/USD trades at 1.3437 after bouncing off daily lows of 1.3367.

UOB economists Enrico Tanuwidjaja and Sathit Talaengsatya assess Thailand’s fiscal stimulus as cushioning 2H2026 growth but not warranting a Gross Domestic Product (GDP) upgrade.

BNY’s Bob Savage reports that renewed Iran–US tensions and evidence of tight US inventories are supporting Oil, with satellite data showing most Strait of Hormuz export facilities closed.

United States EIA Natural Gas Storage Change declined to 92B in May 22 from previous 101B

ABN AMRO highlights a more dovish tone from the MPC after its earlier hawkish stance in March. The bank still expects an insurance rate hike over summer, albeit with less conviction, before a return to a wait-and-see approach as energy supplies normalise in Q3.

Axios journalist Barak Ravid reported on Thursday that the US and Iran have reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and launch negotiations on Iran's nuclear program, but President Trump has yet to give it his final approval, according to two US official

Alberto Musalem (St. Louis, 2028 voter) struck a cautious and hawkish tone on Thursday, warning that inflation pressures remain elevated despite growing optimism around artificial intelligence and productivity gains.

EUR/USD trims earlier losses on Thursday as traders digest a slew of US economic data that eases demand for the US Dollar (USD) despite heightened geopolitical tensions in the Middle East. At the time of writing, the pair is trading around 1.1627, rebounding from an intraday low of 1.1586.

MUFG’s Derek Halpenny and Abdul-Ahad Lockhart highlight that renewed Middle East conflict risks and rising Oil prices are reinforcing upside risks for the Dollar. They note that higher energy costs are fuelling inflation concerns at the Federal Reserve, with officials turning more hawkish.

ING’s Francesco Pesole argues that the Pound has largely priced out recent UK political risk, with the EUR/GBP political risk premium, estimated at about 1% in mid-May, now back to zero.

United States New Home Sales (MoM) came in at 0.622M below forecasts (0.67M) in April

United States New Home Sales (MoM) above expectations (0.67M) in April: Actual (622M)

UOB’s economist Lee Sue Ann highlights softer Australian inflation and a cooling labour market as reasons for the Reserve Bank of Australia (RBA) to keep the cash rate at 4.35%.

Michael Pfister at Commerzbank highlights that three months into the Iran conflict, the Strait of Hormuz remains closed, implying a persistent energy price shock even if a US–Iran deal is reached soon.

Federal Reserve Bank of New York President John Williams said on Thursday that the the path for the monetary depends on data, outlook and risks, per Reuters.

Scotiabank strategists Shaun Osborne and Eric Theoret notes that the Canadian Dollar (CAD) is soft against the US Dollar (USD), with USD/CAD trading near fresh local highs in an environment of mild risk aversion linked to renewed US/Iran tensions.