Trading news

The USD/JPY pair fell near the 158.30 region on Wednesday, even as the United States (US), Iran and Israel had agreed on a two-week ceasefire.

USD/CAD trades with a downside bias on Wednesday, as the US Dollar (USD) comes under broad selling pressure following a temporary ceasefire agreement between the United States and Iran. At the time of writing, the pair is trading around 1.3847, extending losses for the third straight day.

The Pound Sterling rallies on Wednesday, advancing for the third straight day this week, up more than 1.10% due to broad US Dollar weakness, sparked by an improvement in risk appetite following a two-week ceasefire between the US and Iran.

Commerzbank’s Thu Lan Nguyen notes that Brent prices dropped by USD 15 on news of a two‑week U.S.–Iran ceasefire and reopening of the Strait of Hormuz, but still trade near USD 95, well above pre‑war levels.

Iran's Fars News Agency reported on Wednesday that oil tankers passing through the Strait of Hormuz have been stopped after Israel breached the ceasefire, per Reuters.

BNP Paribas analysts argue that weaker demand in the Eurozone compared to 2022 is helping to contain inflation, even as supply constraints remain above historical averages.

BNY's Head of Markets Macro Strategy Bob Savage highlights that the Reserve Bank of India (RBI) left its policy rate at 5.25% with a neutral stance, citing uncertainty from the West Asia conflict.

Scotiabank strategists Shaun Osborne and Eric Theoret note that the Pound (GBP) is a strong G10 performer, gaining about 1.1% on sentiment-driven buying and pushing to the top of its late-February range.

United States EIA Crude Oil Stocks Change above expectations (0.7M) in April 3: Actual (3.081M)

MUFG’s Head of Research Derek Halpenny highlights that a two-week ceasefire between the US, Israel and Iran has sharply weakened the US Dollar as risk sentiment improves and Brent Oil falls.

Wells Fargo economists highlight that the Iran conflict and higher Oil prices are reviving consumer inflation and breaking the recent disinflation trend.

Royal Bank of Canada (RBC) analysts review how Canada has weathered one year of U.S. tariff shocks. They note that Canada’s Gross Domestic Product (GDP) and unemployment held up, but sectoral and regional damage was significant.

TD Securities strategists argue that higher energy-linked inflation and delayed Fed cuts keep the opportunity cost of holding Gold elevated in the near term. They also flag the lack of Middle East capital as a downside catalyst.

The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, comes under heavy selling pressure on Wednesday, sliding to one-month lows after the United States and Iran agreed to a two-week ceasefire deal.

OCBC strategists Sim Moh Siong and Christopher Wong stress that markets are being driven almost entirely by Iran headlines, with Oil and yields reacting to ceasefire developments.

The Federal Reserve (Fed) will publish its Minutes from the March 18 meeting on Wednesday. The release should be less about the decision itself and more about the officials’ “no rush to cut” narrative.

Commerzbank’s Thu Lan Nguyen notes Copper has turned into a top performer after being one of the weakest metals, pressured by rising LME stocks and mixed supply news.

Iran's Islamic Revolutionary Guard Corps (IRGC) stated on Wednesday that Iran will manage the Strait of Hormuz proactively and control it intelligently, while warning of a stronger response to any renewed attacks from the United States (US) or Israel, per Reuters.

BNY's Head of Markets Macro Strategy Bob Savage at notes that the Reserve Bank of New Zealand (RBNZ) kept the Official Cash Rate (OCR) at 2.25% as the Middle East conflict altered the outlook, lifting near‑term inflation risks while weighing on growth.

Rabobank economists Mauricio Une and Renan Alves note that the Dollar (USD) closed last week at 5.1573, with the Brazilian Real (BRL) appreciating 1.6% over the week, ranking among the top emerging-market performers.