Trading news

Volkmar Baur highlights exceptionally strong Chinese export data, with February exports up nearly 40% year-on-year and the combined January–February surplus reaching about 6.2% of GDP.

Rabobank strategists Molly Schwartz and Michael Every highlight extreme volatility in Brent, which spiked towards $120 before closing below $90, driven by Saudi supply disruptions, G7 stockpile plans and US policy options.

The EUR/USD pair edges lower to around 1.1615 during the early European session on Tuesday. Concerns over oil flow disruptions through the Strait of Hormuz boost the US Dollar (USD) as a safe-haven and create a headwind for the major pair. 

Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said on Tuesday that volatility in oil prices and the Middle East is a genuine challenge for central banks.  Hauser further stated that the response depends on the size and persistence of the price shock, which is very uncertain.

Standard Chartered economists argue that Europe faces a renewed energy price shock from the Middle East conflict, with Oil and natural gas prices sharply higher.

Netherlands, The Consumer Price Index n.s.a (YoY) in line with forecasts (2.4%) in February

Netherlands, The Manufacturing Output (MoM) declined to 0.4% in January from previous 0.5%

Netherlands, The Consumer Spending Volume fell from previous 0.8% to 0% in January

USD/CHF edges higher after two days of losses, trading around 0.7780 during the Asian hours on Tuesday. The pair gains ground as the US Dollar (USD) inches higher after a sharp intraday drop in the previous session.

The USD/CAD pair struggles to build on the overnight bounce from the 1.3525 area, or a nearly one-month low, and oscillates in a narrow band during the Asian session on Tuesday. Spot prices currently trade below the 1.3600 mark, nearly unchanged for the day, amid mixed fundamental cues.

The EUR/JPY cross loses traction to around 183.20 during the early European session on Tuesday. The Japanese Yen (JPY) strengthens against the Euro (EUR) as escalating conflict in the Middle East boosts safe-haven demand. 

West Texas Intermediate (WTI) Crude Oil prices regain positive traction following the previous day's dramatic turnaround from the highest level since June 2022 and climb back above the $88.00 mark during the Asian session on Tuesday.

USD/INR rebounds after registering little losses in the previous session. However, the pair reached an all-time high of 92.81 on Monday as the Indian Rupee (INR) faces intense selling pressure amid increased risk aversion and higher oil prices.

Gold (XAU/USD) builds on the overnight goodish rebound from the vicinity of the $5,000 psychological mark and attracts some follow-through buying during the Asian session on Tuesday.

Gold prices rose in India on Tuesday, according to data compiled by FXStreet.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 98.90 during the early European trading hours on Tuesday. The DXY edges higher amid uncertainty and persistent geopolitical risks in the Middle East.

China Trade Balance CNY came in at 1.5B, below expectations (950B) in February

China Exports (YoY) above forecasts (7.1%) in February: Actual (21.8%)

China Exports (YoY) CNY: 19.2% (February) vs 5.2%

China Exports (YoY) above expectations (7.1%) in February: Actual (19.2%)