Trading news

Here is what you need to know on Wednesday, March 11:

European Central Bank (ECB) policymaker Peter Kazimir comments on the central bank’s path forward on interest rates in light of the conflict in the Middle East.

GBP/USD gains ground after registering little losses in the previous session, trading around 1.3450 during the Asian hours on Wednesday. The Pound Sterling (GBP) strengthens against its peers amid optimism that the Middle East conflict may have a smaller impact on inflation than initially feared.

The USD/CAD pair sticks to its modest intraday losses through the early European session on Wednesday and currently trades just above mid-1.3500s, down nearly 0.15% for the day. Spot prices, meanwhile, remain close to a nearly one-month low, touched on Monday, and seem vulnerable to slide further.

Rabobank’s RaboResearch Global Economics & Markets team highlights that Oil prices are not fully reflecting escalating risks around the Strait of Hormuz, despite ongoing Iranian attacks on Gulf energy infrastructure and US strikes.

DBS Group Research economist Eugene Leow highlights that consensus expects US CPI at 2.4% year-on-year and 0.3% month-on-month for February, with investors highly sensitive to upside surprises.

Germany Consumer Price Index (YoY) remains unchanged at 1.9% in February

Germany Harmonized Index of Consumer Prices (YoY) meets forecasts (2%) in February

Germany Consumer Price Index (MoM) in line with expectations (0.2%) in February

Germany Harmonized Index of Consumer Prices (MoM) meets forecasts (0.4%) in February

The USD/CHF pair loses ground to near 0.7765 during the early European trading hours on Wednesday. Ongoing Middle East tensions continue to boost a safe-haven currency such as the Swiss Franc (CHF) against the US Dollar (USD).

Danske Research Team notes that European equities rebounded strongly, with Stoxx 600 up 2% and OMX Nordic nearly 3%, while US indices ended slightly lower. Tech and growth stocks outperformed value despite a modest rise in US 10‑year yields.

European Central Bank (ECB) Governing Council (GC) member and Bank of France Governor, François Villeroy de Galhau, urged patience on the bank’s interest rate move amid the Middle East conflict.

RBC Economics’ Claire Fan and Nathan Janzen argue higher Oil prices from current supply disruptions are unlikely to trigger a major Bank of Canada policy shift. Past rate cuts in 2015 reflected a structural Oil shock, unlike today’s geopolitical spike.

The AUD/USD pair extends the rally to around 0.7170 during the early European trading hours on Wednesday. The Australian Dollar (AUD) rises to near a three-year high against the Greenback amid hawkish expectations of the Reserve Bank of Australia (RBA). 

Commerzbank analysts highlight extreme swings in Brent and WTI as the Strait of Hormuz remains effectively closed, forcing key Middle Eastern producers to cut output by an estimated 6.7 million bpd.

The EUR/JPY cross gains ground to near 183.90 during the early European session on Wednesday. The Japanese Yen (JPY) softens against the Euro (EUR) amid market doubt about the speed of the Bank of Japan (BoJ) normalization.

The AUD/JPY cross gains strong positive traction for the fourth consecutive day and continues scaling new all-time tops through the Asian session on Wednesday. Spot prices currently trade around mid-113.00s, up 0.90% for the day, and seem poised to prolong the recent well-established uptrend.

EUR/USD pares its recent losses registered in the previous session, trading around 1.1630 during the Asian hours on Wednesday. Daily chart technical analysis indicates a bearish bias as the pair continues to trade within a descending channel pattern.

A Reuters poll showed on Wednesday that all 64 respondents said the Bank of Japan (BOJ) would keep rates unchanged at 0.75% next week.