Austan Goolsbee, President of the Federal Reserve (Fed) Bank of Chicago, said that inflation will come roaring back, citing that with Oil prices rising, this is a stagflationary shock to the market in a prepared speech in Detroit on Tuesday.
OCBC strategists Christopher Wong and Sim Moh Siong note that Asian FX, including South Korean Won (KRW), has traded slightly firmer on hopes of de-escalation in the Middle East, but stresses that geopolitics remains the key driver.
West Texas Intermediate (WTI) Crude Oil trades in a volatile and choppy range on Tuesday as traders remain cautious ahead of a deadline set by US President Donald Trump for Iran to reach a deal.
Commerzbank’s Tatha Ghose argues that Turkey’s brief disinflation respite is already obsolete as higher Oil prices and external shocks dominate. Headline CPI slowed in March, but core dynamics remain strong and credibility concerns persist.
United States 3-Year Note Auction: 3.897% vs 3.579%
Brown Brothers Harriman’s (BBH) Elias Haddad anticipates the RBI, NBP, BCRP and BOK will all leave policy rates unchanged at upcoming meetings.
The Pound Sterling (GBP) rises by over 0.20% against the US Dollar (USD) on Tuesday amid speculation of a ceasefire agreement, but newswires revealed that the chances of a deal are far, increasing the likelihood of a US attack as Donald Trump’s deadline approaches.
Gold (XAU/USD) is trading in a choppy range on Tuesday with markets on edge as the ultimatum from US President Donald Trump to reach a deal with Iran nears its deadline.
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.
