The Memorial Day session delivered a lot of positive news, creating a strong bullish outlook for the coming trading week.
The recent US-Iran draft agreement gave the broader market a major boost, and institutional investors are now expecting a formal deal to be reached during this final ceasefire extension.
A key outcome from these diplomatic talks is the growing expectation that the Strait of Hormuz will reopen within 30 days. This breakthrough triggered a sharp correction in energy markets, with WTI Crude Oil dropping 7% during the holiday session.
The US Dollar also fell alongside crude, as the war-related inflation premium and safe-haven demand quickly faded from the broader economic picture.
Cross-Asset Daily Performance, May 25, 2026 – Source: TradingView.
Although today’s price movements were dramatic, trading activity was lighter than usual because of global holiday closures.
Tomorrow, as traders return from the long weekend, expect much higher trading volumes and more decisive market moves as markets respond to this important geopolitical development.
Safe trades and keep your eyes on the news!
Daily FX Performance (16:14), May 25, 2026 – Courtesy of Finviz.
