A temporary Ceasefire extension maintains a bullish action – North American Mid-Week Market Update

Markets remain bullish despite geopolitical risk after a temporary ceasefire extension. US equity benchmarks pushed to record highs — the S&P 500 cleared all-time highs in three consecutive sessions while Nasdaq led gains — driven by strong US data (retail sales) and resilient investor sentiment. Oil spiked on Strait of Hormuz tensions and is trading near $95, boosting commodity-linked FX like the CAD. The US dollar is consolidating above the 98.00 DXY level after Kevin Warsh’s Senate hearing signalled potential Fed policy shifts, keeping FX markets cautious. Canadian CPI (2.4%) and a Bank of Canada hold reinforced CAD resilience. Overall tone is pro-risk for equities but conditional on upcoming geopolitical deadlines and central bank developments, which could quickly flip dollar and commodity dynamics.