TD Securities stategists expect the Bank of Canada to keep its overnight rate at 2.25% with a cautious tone, as growth and inflation run below projections. They highlights elevated uncertainty and new inflation risks from the Iran conflict and higher Oil prices.
Austria HICP (MoM) meets forecasts (0.8%) in February
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its losing streak for the third successive session and trading around 99.50 during the early European hours on Wednesday.
Here is what you need to know on Wednesday, March 18:
Silver price (XAG/USD) holds positive ground near $79.90 during the early European session on Wednesday. Escalating tensions in the Middle East push demand toward safe-haven assets like silver.
Gold (XAU/USD) reverses a modest intraday dip and trades just above the $5,000 psychological mark during the first half of the European session on Wednesday.
South Africa Consumer Price Index (MoM) rose from previous 0.2% to 0.4% in February
MUFG’s Derek Halpenny expects the FOMC to keep policy options open, with limited changes to the Summary of Economic Projections and no alteration to the median dot profile. MUFG anticipates balanced Fed communication and subdued FX and rates volatility.
ING commodities strategists Warren Patterson and Ewa Manthey report that Gold is trading in a narrow range as the US‑Israeli conflict with Iran extends. A firmer Dollar and higher real yields offset safe‑haven demand from Middle East tensions.
Danske Research Team highlights that USD/CAD remains confined between 1.36 and 1.37 as risk-off sentiment offsets support from Canada’s net energy exporter status.
ING strategist Francesco Pesole argues that a hawkish revision of the Federal Reserve Dot Plot could support the Dollar, with markets already pricing limited cuts.
According to UOB’s Quek Ser Leang, GBP/USD rebounded to 1.3364 and may edge higher toward 1.3410, though a clear break above that level is seen as unlikely given only modest momentum. Intraday, gains are expected to stay below 1.3390, with support at 1.3335 and 1.3320.
