Here is what you need to know for Wednesday, March 11:
Better market sentiment is taking its toll on the Greenback as stabilizing Oil prices give riskier positions more appeal to investors. According to the EIA Short-Term Energy Outlook, "Once the oil trade through the Strait of Hormuz is reestablished, global oil production will continue to outpace consumption, removing the stagnation fears." The statement maintained markets' optimism late in the American session. Meanwhile, G7 members stand ready to release reserves to keep oil prices under control though they have decided against any release thus far.
President Donald Trump's comment on Monday afternoon that the war he launched alongside Israel against Iran was "largely complete" has left the market rather optimistic that a ceasefire and an opening of the Strait of Hormuz could happen as soon as this week. However, German Chancellor Friedrich Merz told reporters that, "We're concerned at the apparent lack of a joint plan on how this war can quickly be brought to a convincing conclusion."
The US Dollar Index (DXY) is trading near 98.70, in a tightly bound range, slipping after market sentiment improved amid easing concerns about oil flows.
EUR/USD is trading near the 1.1640 price zone, reaching a one-week high after three consecutive days of gains following United States (US) President Donald Trump's comments that the end of the war could be at hand.
GBP/USD is trading near the 1.3455 level, rising to a two-week high after the Middle East conflict sparked inflation fears worldwide, prompting market participants to price out a rate cut by the Bank of England (BoE) at the March 19 meeting.
USD/JPY is trading near the 157.70 price zone, steadying after the US Dollar (USD) lost investors' interest over a brief expectation of “resolution” in the Oil flows. The Japanese Yen (JPY) fails to gain more traction amid a weakened USD, as Oil supply disruptions linked to the escalating US-Iran war weigh on the market, given the country’s reliance on imported energy.
West Texas Intermediate (WTI) Oil is trading below $80 per barrel after the United States (US) War Secretary Pete Hegseth said, “If Iran does anything to stop the flow of Oil within the Strait of Hormuz, they will be hit harder than ever.”
Gold is trading at $5,230 as the bright metal draws support from a recently weakened USD, surging above a one-week high and now expected to extend its gains over the week.
What’s next in the docket:
Wednesday, March 11:
Germany, February, HICP.
United Kingdom, BoE Monetary Policy Report Hearings.
United Kingdom, Consumer Inflation Expectations.
United States, February, CPI.
Thursday, March 12:
Australia, March, Consumer Inflation Expectations
UK, January, Industrial Production.
United States, January, Building Permits.
United States, January, Housing Starts.
United States, Initial Jobless Claims.
United States, February, Monthly Budget Statement.
New Zealand, February, Business NZ PMI.
Friday, March 13:
UK, January, GDP.
UK, January, Manufacturing Production.
Spain, February, HICP.
Eurozone, January, Industrial Production s.a.
Canada, February, Average Hourly Wages.
Canada, February, Net Change in Employment.
Canada, February, Unemployment Rate.
United States, January, Core Personal Consumption Expenditures - Price Index.
United States, Flash (Q4), Core Personal Consumption Expenditures.
United States, January, Durable Goods Orders.
United States, Flash (Q4), Gross Domestic Product Annualized.
United States, Flash (Q4), Gross Domestic Product Price Index.
United States, January, Nondefense Capital Goods Orders ex Aircraft.
United States, January, Personal Consumption Expenditures - Price Index.
United States, Flash (Q4), Personal Consumption Expenditures Prices.
United States, January, Personal Income.
United States, January, Personal Spending.
United States, Flash March, Michigan Consumer Expectations Index.
United States, Flash March, Michigan Consumer Sentiment Index.
United States, Flash March, UoM 1-year Consumer Inflation Expectations.
United States, January, JOLTS Job Openings.
United States, Flash March, UoM 5-year Consumer Inflation Expectation.
Comments
Log in or sign up to join the conversation.