Trading news

Brown Brothers Harriman’s (BBH) Elias Haddad notes that a prolonged energy shock from the Iran conflict heightens financial stability risks and supports the Dollar beyond what rate differentials imply.

Gold price (XAU/USD) trades higher to near $4,675.00, but is broadly sideways, during the European trading session on Tuesday.

The Australian Dollar (AUD) is trading higher against the US Dollar (USD) for the second consecutive day on Tuesday, but the pair failed to find any significant acceptance above 0.6950.

According to a Reuters report, a senior Iranian official has rejected a temporary ceasefire called in the two-tier deal by the United States, which was delivered by Pakistan.

The Euro (EUR) extends losses against the British Pound (GBP) for the second consecutive day on Tuesday, approaching the bottom of its near-term horizontal range at 0.8700, from Monday’s highs at 0.8735.

National Bank of Canada (NBC) economists Stéfane Marion and Kyle Dahms describe recent Euro (EUR) weakness versus Dollar (USD) after the Iran conflict and energy shock, but keep a recovery bias for EUR/USD.

Japan’s Finance Minister (FM) Satsuki Katayama said during European trading hours on Tuesday that the administration remains focused on mitigating risks to the Japanese economy in the wake of the Middle East war.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/JPY traded quietly between 159.28 and 159.82, closing at 159.68, with a firm underlying tone.

Societe Generale economists describe a quiet week in the UK, with Gilt yields easing as markets trimmed Bank of England (BoE) hike expectations after Governor Bailey pushed back on tightening.

EUR/CAD gains ground as the Euro (EUR) receives support from the hawkish tone of the European Central Bank (ECB). The currency cross is trading around 1.6100 during the European hours on Tuesday.

Silver prices (XAG/USD) rose on Tuesday, according to FXStreet data. Silver trades at $72.88 per troy ounce, up 0.12% from the $72.79 it cost on Monday.

DBS Group Research’s Philip Wee expects the Reserve Bank of New Zealand to keep policy on hold at its April 8 meeting, looking through energy-driven inflation. He notes Governor Anna Breman’s conditional hawkishness if inflation expectations de-anchor.

Spain 6-Month Letras Auction up to 2.362% from previous 2.059%

ING analysts Ewa Manthey and Warren Patterson highlight that central banks have resumed strong Gold buying, with February net purchases led by Poland and continued accumulation by China, Czech Republic and others.

Singapore Foreign Reserves (MoM) climbed from previous 416.1B to 419.2B in March

Commerzbank’s Chief Economist Dr. Jörg Krämer argues that the European Central Bank should respond to the recent Oil price shock by prioritizing long-term inflation expectations. He notes that higher energy costs are both lifting inflation and weighing on growth, creating a policy dilemma.

Spain 12-Month Letras Auction rose from previous 2.121% to 2.611%

Brown Brothers Harriman’s (BBH) Elias Haddad highlights a busy US data calendar for the Dollar, with February PCE, March CPI and the University of Michigan survey guiding inflation expectations.

The US benchmark West Texas Intermediate Oil (WTI) hesitates near four-week highs on Tuesday. Price action remains steady above the 103.00 per barrel, but attempts to extend gains beyond 105.00 have been capped with US President Donald Trump’s deadline on Tehran approaching.

United Kingdom S&P Global Services PMI below forecasts (51.2) in March: Actual (50.5)