On Thursday, the US President Donald Trump posted on his Truth Social network a video of a bridge falling in Iran, pressuring Tehran to make a deal.
Futures contracts on the Dow Jones Industrial Average (DJIA) shed a meager half-percent on Thursday, but that number tells almost none of the story. At the session lows, the DJIA was down more than 600 points, the S&P 500 had shed 1.5%, and the Nasdaq Composite was off 2.2%.
DBS Group Research economist Radhika Rao notes Indonesia’s March inflation eased to 3.5% year-on-year as government stimulus offset base effects and Lebaran-related pressures.
The USD/JPY pair is trading near the 159.40 price region on Thursday, having surged earlier in the day, though price action turned more volatile during the American session as headlines briefly supported risk sentiment.
West Texas Intermediate (WTI) Crude Oil rebounds sharply on Thursday, rising more than 8% on the day, as ongoing tensions in the Middle East continue to keep a geopolitical risk premium embedded in prices amid supply disruptions through the Strait of Hormuz.
TD Securities’ Robert Both argues that higher Oil prices will support Canada’s 2026 GDP, but export bottlenecks limit the upside.
United States 4-Week Bill Auction remains at 3.62%
The British Pound retreats during the North American session after US President Donald Trump escalated the conflict, hinting that it will at least extend for two to three weeks. At the time of writing, the GBP/USD trades at 1.32144, down 0.40%.
Lorie Logan, President of the Federal Reserve (Fed) Bank of Dallas, said that the Fed should not let balance sheets distract them from their main mission. Logan also claimed that central bank balance sheet growth isn’t bad if it meets the public's need during a speech at her bank on Thursday.
Gold (XAU/USD) stages a rebound on Thursday and trims most of its intraday losses as sellers fail to sustain a move below the $4,600 level, while easing US Dollar (USD) and Treasury yields provide additional support.
BNY's EMEA Macro Strategist Geoff Yu argues that the National Bank of Poland’s (NBP) March rate cut underestimated inflation risks linked to the regional conflict.
Commerzbank’s Tatha Ghose notes that improving PMIs in Poland, Czech Republic and Hungary had signalled a potential upswing, helped by Germany’s earlier recovery signs.
