Morning Market Briefing: 2 Jun 2026

Global markets are entering Tuesday's London session in a split-screen environment: Wall Street closed at fresh all-time highs driven by Nvidia's AI momentum, but Asia has sold off sharply as Iran's state media announced it is halting negotiations with the U.S. and threatening to completely close the Strait of Hormuz. Oil is the dominant macro theme, with WTI near $90 after surging nearly 6% on Monday. The Fed remains firmly on hold at 3.5 to 3.75 percent, with no rate cuts on the horizon and some policymakers openly discussing hikes - a backdrop that is keeping the dollar supported and gold under pressure despite the geopolitical noise. Crucially, gold fell 1.2% on Monday even as tensions escalated, suggesting the inflation-and-rates narrative is currently overriding the safe-haven bid. On the forex side, USD/JPY is approaching the critical 160.00 intervention zone, with CFTC positioning data showing yen shorts at a 52-week extreme - the single most dangerous setup in the market right now. EUR/USD has broken below 1.1634 support and faces further pressure. April JOLTS job openings, due at 3 p.m. UK time, is the key intraday catalyst for the dollar and rates. The full briefing covers specific price levels, entry frameworks, and the exact early warning signals that would indicate today's dominant narrative is shifting before the rest of the market catches on. Subscribe to Markets Mastered for the complete daily briefing, institutional positioning analysis, and execution guidance every morning before the London open.