August Markets: No Rest for the Wary Investor

Markets are showing no signs of slowing down despite being in the middle of August. The U.S.-Japanese intervention to support the yen may have eased Tokyo's concerns, but FX traders still have unanswered questions.

The use of euros instead of dollars in the intervention has sparked debate over whether the U.S. Treasury wants to avoid bond market strains caused by foreign central banks selling Treasuries to fund currency-support operations.

Meanwhile, investors are holding out hope for a deal to end the Gulf conflict and ensure safe passage through the Strait of Hormuz. A potential agreement between Iran and Oman has been negotiated, but expectations that it will hold remain modest.