Silver price (XAG/USD) holds positive ground near $79.90 during the early European session on Wednesday. Escalating tensions in the Middle East push demand toward safe-haven assets like silver.
Gold (XAU/USD) reverses a modest intraday dip and trades just above the $5,000 psychological mark during the first half of the European session on Wednesday.
South Africa Consumer Price Index (MoM) rose from previous 0.2% to 0.4% in February
South Africa Consumer Price Index (YoY) dipped from previous 3.5% to 3% in February
UBS' Chief Economist Paul Donovan notes that the Federal Reserve is widely expected to keep policy unchanged, with attention centered on Fed Chair Powell’s press conference. Markets are looking for Powell’s reaction to Oil prices, the war and implications for US retail gasoline.
UOB analysts note the broad Dollar index DXY fell for a second day to 99.57 as traders positioned ahead of the Fed decision and reacted to geopolitical tensions around Iran.
West Texas Intermediate (WTI) oil price has given up its recent gains from the previous session, trading around $93.20 per barrel during the Asian hours on Wednesday. Traders are awaiting the US Energy Information Administration (EIA) report due later on Wednesday for fresh cues on supply trends.
China's foreign ministry said during the European trading session on Wednesday that it will provide updates about the delay in United States (US) President Donald Trump’s meeting with Chinese leader Xi Jinping.
Commerzbank’s Michael Pfister analyses EUR/USD options, noting that since the Iran conflict the relationship between implied volatility and risk reversals has reverted towards its pre–"Liberation Day" pattern.
Commerzbank strategist Hauke Siemßen argues that ECB expectations will dominate trading, with forwards now fully pricing the first rate hike by September and only a 50% chance of another move by year-end.
The EUR/USD pair faces slight pressure near 1.1550 during the European trading session on Wednesday after a two-day recovery move. The major currency pair struggles as the US Dollar strives to regain ground ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.
OCBC strategists Sim Moh Siong and Christopher Wong revise their Brent Oil profile higher as the US–Iran conflict keeps the Strait of Hormuz effectively shut and Oil flows near a standstill.
