The Dow Jones Industrial Average (DJIA) dropped around 380 points, or 0.8%, snapping a four-session winning streak as risk appetite collapsed in the hours before President Trump's self-imposed deadline for Iran to agree to reopen the Strait of Hormuz.
The USD/JPY pair is trading near the 159.95 price region with a strong but volatile tone on Tuesday, as markets react to a sharp escalation in the ongoing conflict between Israel, the United States (US and Iran.
The Federal Reserve (Fed) Bank of New York's Survey of Consumer Expectations (SCE) for March showed one-year-ahead inflation expectations jumping to 3.4%, up 0.4 percentage points from February's 3.0% reading.
The Euro (EUR) rises against the US Dollar (USD) on Tuesday, as the Greenback softens amid cautious market sentiment ahead of a deadline set by US President Donald Trump for Iran to reach a deal or open the Strait of Hormuz.
MUFG’s Head of Research Derek Halpenny argues that rising Oil and gasoline prices from the Middle East conflict are set to push US inflation higher, with March CPI expected to jump. He highlights a sharp rise in ISM Services prices paid and weakening employment indices.
DBS Group Research’s Eugene Leow notes that Gold has stayed relatively stable despite conflicting geopolitical news, including a potential ceasefire and renewed threats around the Strait of Hormuz.
TD Securities’ commodity team argues that prolonged disruption in the Persian Gulf and blocked flows through the Strait of Hormuz leave Oil poised for another sharp leg higher.
The Wall Street Journal reported on Tuesday that Iran has cut off direct communications with the United States (US) following President Donald Trump's threat to destroy Iran's whole civilization.
Kit Juckes at Societe Generale highlights Sweden as the only G10 economy forecast to grow faster than the United States (US) this year, yet notes the Swedish Krona (SEK) is currently the weakest G10 currency.
New Zealand GDT Price Index fell from previous 0.1% to -3.4%
ING’s Chris Turner expects the Reserve Bank of New Zealand (RBNZ) to leave rates unchanged at 2.25% with no new forecasts and limited guidance, as markets price only modest tightening this year.
Turkey Treasury Cash Balance: -279.58B (March) vs previous -94.42B
