Traders wake up to a steady 3.63% overnight financing rate, maintaining the balance seen yesterday. The macro landscape reflects a cautious sentiment across global markets as Moscow's Mayor reports a refinery fire is "mostly contained." This development may alleviate some energy price pressures in an already tense geopolitical climate. Furthermore, Iran's Foreign Minister Araqchi emphasizes the necessity for dialogue with Gulf nations, which could signal potential shifts in oil export dynamics, especially as reports suggest that the U.S. will issue waivers for Iran's oil exports soon after a recent Memorandum of Understanding (MOU) deal.

In another significant update, the Bank of England continues to prioritize economic stability and inflation control, with policymakers suggesting that a 35 basis points rate hike may be on the table for this year. They anticipate Q2 GDP growth could hover around 0.2%, slightly improving from previous forecasts while projecting CPI to rise to just over 3.25% in Q4. As the market processes these insights on monetary policy, traders are firming their expectations around BoE rate variations.

As we approach today’s trading session with no open positions, algos remain on alert for any developments arising from the geopolitical front and ongoing discussions in the currency and commodity markets. With sentiment readings from our AI stack appearing positive, the regime filter indicates potential for volatility, although no high-impact macro events are scheduled in the next 48 hours. Traders should keep an eye on developments surrounding Iran’s oil sanctions and the U.K’s economic signals as they unfold today.