USD/CAD trades with a softer tone on Wednesday, as a pullback in the US Dollar (USD) lends support to the Canadian Dollar (CAD). The pair is trading around 1.3891 at the time of writing, retreating after touching its highest level since December 2025 earlier this week.
ABN AMRO's Senior Economist Bill Diviney notes Eurozone inflation rose to 2.5% year-on-year in March, driven mainly by higher petrol and energy prices, while core inflation eased to 2.3%.
Rabobank’s Senior FX Strategist Jane Foley notes that Norges Bank has shifted to a more hawkish stance as Norwegian inflation proves sticky. January and February CPI data surprised on the upside, prompting markets to move from expecting rate cuts to pricing in further tightening.
Deutsche Bank analysts Shreyas Gopal and Sanjay Raja note that UK consumer confidence in March 2026 was surprisingly resilient, sitting between levels seen at the onset of Covid and the 2022 energy shock.
TD Securities analysts expect the March US labor report to show a normalization in Nonfarm Payrolls (NFP), with headline gains of 30k, private NFP at 40k and a -10k drag from government jobs.
Commerzbank economists Bernd Weidensteiner and Christoph Balz assess how the recent surge in Brent and WTI prices affects the US economy. They stress that the United States is structurally less vulnerable than in the 1970s thanks to lower oil intensity and higher domestic production.
United States EIA Crude Oil Stocks Change registered at 5.451M above expectations (2M) in March 27
Gold (XAU/USD) trades with a mild upside bias on Wednesday, building on the previous day's solid gains as optimism grows that the US-Israel war with Iran could end soon.
HSBC’s Willem Sels and Lucia Ku maintain a positive six‑month view on US equities and USD investment grade credit. They highlight the United States’ status as an energy exporter, robust projected earnings growth, and strong technology and AI‑related investment.
EUR/USD extends its advance for a second consecutive day on Wednesday, climbing to one-week highs as improving optimism around the US-Iran war lifts risk sentiment, pushing the Euro (EUR) higher and weighing on the US Dollar (USD).
The Institute for Supply Management’s (ISM) data showed the Manufacturing PMI edging higher to 52.7 in March, up from 52.4 in February and above analysts’ expectations of 52.5.
While speaking to Reuters at the Bank of England's (BoE) London headquarters on Reuters, BoE Governor Andrew Bailey argued that markets are getting ahead of themselves by pricing in interest-rate hikes.
