Silver (XAG/USD) trades with a downside bias on Thursday, coming under pressure as macro headwinds stemming from the ongoing US–Israel war with Iran weigh on sentiment.
The US Dollar Index (DXY) bounced back toward the 100.00 area after United States (US) President Donald Trump said the US would intensify strikes on Iran over the next two to three weeks, crushing hopes for a near-term de-escalation and reviving safe-haven demand for the Greenback.
Gold price recoils by some 2% as the US Dollar rises after US President Donald Trump revealed that the war on Iran would last from two to three weeks, pouring cold water on hopes for a quick resolution to the Middle East conflict.
Commerzbank’s Volkmar Baur expects the Chinese Yuan (CNY) to edge higher against the US Dollar (USD) while staying undervalued versus most other currencies. The bank projects USD/CNY at 6.90 by June 2026 and 6.70 by late 2027, with EUR/CNY broadly stable.
Royal Bank of Canada (RBC) analysts note Canada’s trade deficit widened sharply in February to CAD 5.7 billion, far above expectations, as both exports and imports jumped. They highlight one-off Gold imports, stronger equipment and consumer goods demand, and surging motor vehicle exports.
EUR/USD trades under pressure on Thursday as ongoing Middle East tensions keep the US Dollar (USD) broadly supported, weighing on the Euro (EUR).
MUFG's Senior Currency Analyst Lloyd Chan highlights the Thai Baht (THB) as one of the more vulnerable Asian currencies under sustained high energy prices.
Commerzbank’s Tatha Ghose argues that upcoming Turkish CPI data are largely obsolete given the looming impact of higher energy prices. He expects a strong March monthly print but stresses that external-shock inflation may be treated as transient by FX markets.
On Thursday, the US President Donald Trump posted on his Truth Social network a video of a bridge falling in Iran, pressuring Tehran to make a deal.
Futures contracts on the Dow Jones Industrial Average (DJIA) shed a meager half-percent on Thursday, but that number tells almost none of the story. At the session lows, the DJIA was down more than 600 points, the S&P 500 had shed 1.5%, and the Nasdaq Composite was off 2.2%.
DBS Group Research economist Radhika Rao notes Indonesia’s March inflation eased to 3.5% year-on-year as government stimulus offset base effects and Lebaran-related pressures.
The USD/JPY pair is trading near the 159.40 price region on Thursday, having surged earlier in the day, though price action turned more volatile during the American session as headlines briefly supported risk sentiment.
