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
Henry Allen at Deutsche Bank says Brent crude Oil above $100 has not triggered a 1970s‑style shock because markets still discount a short conflict and lower prices ahead.
BNY’s Head of Markets Macro Strategy Bob Savage reports that Eurozone data and European Central Bank (ECB) commentary point to rising downside risks for the Euro as the Iran war and energy shock weigh on growth and sentiment.
United States RealClearMarkets/TIPP Economic Optimism (MoM) registered at 42.8, below expectations (48.1) in April
