BNY's Head of Markets Macro Strategy Bob Savage highlights comments from Bank of Japan (BoJ) Governor Kazuo Ueda stressing vigilance over higher Oil prices and global financial instability.
Societe Generale analysts note a quiet week for the UK, with the March RICS housing survey pointing to weaker demand as higher energy costs and mortgage rates weigh on confidence.
Rabobank’s Senior FX Strategist Jane Foley notes that the US Dollar (USD) has benefited from renewed safe haven demand and reduced Federal Reserve (Fed) rate cut expectations, with EUR/USD currently testing below 1.17.
Canada Building Permits (MoM) registered at -8.4%, below expectations (-0.5%) in February
Brown Brothers Harriman’s (BBH) Elias Haddad highlights that the Reserve Bank of Australia’s (RBA) narrow 5–4 decision to hike in March leaves upcoming labor data crucial for timing the next move.
ING’s Ewa Manthey and Warren Patterson report that Oil markets rallied sharply after US-Iran talks collapsed, with ICE Brent jumping over 9% and NYMEX WTI moving above $105/bbl. The US plans a maritime blockade around Iranian ports, stoking supply fears.
Deutsche Bank economists report the Federal Reserve (Fed) left rates at 3.50%-3.75% in March and still expects a 25 bp cut in September. Markets price only modest easing. They warn a prolonged Strait of Hormuz blockade could push Brent toward USD 120.
The EUR/USD pair recovers a majority of its opening losses, but is still 0.2% down to near 1.1700 during the late European trading session on Monday. The major currency pair is still under pressure as renewed geopolitical tensions have prompted a risk-off mood.
USD/CAD trades around 1.3840 at the time of writing, virtually unchanged on Monday after briefly advancing earlier in the day.
TD Securities strategists discuss Canadian by-elections in three federal ridings and notes that Prime Minister Carney’s Liberals are close to securing a majority in Parliament.
The (EUR) retreated from last week’s highs near 1.1740 against the US Dollar (USD) on Monday, but so far is holding well, a few pips shy of the 1.1700 level, after bouncing from session lows at the 1.1670 area during the early Asian session.
Silver (XAG/USD) is trading practically flat, right above the $74.00 level at the time of writing, after having hit session lows at $72.61.
