MUFG’s Senior Currency Analyst Michael Wan notes that Oil markets remain exposed to the Iran and Middle East conflict, with the Strait of Hormuz still constrained.
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD rebounded to 0.6938 instead of drifting lower, but the move lacked momentum. The pair is seen trading between 0.6890 and 0.6940 in the near term and within a wider 0.6835–0.6955 band over one to three weeks.
Silver price (XAG/USD) trades broadly flat around $72.50 during the early European trading session on Tuesday. The white metal struggles for a direction as investors await Iran’s final decision over the reopening of the Strait of Hormuz.
Commerzbank’s Volkmar Baur expects the Reserve Bank of New Zealand (RBNZ) to keep rates unchanged at its April meeting, despite the Reserve Bank of Australia’s (RBA) recent hike and the Third Gulf War shock.
Danske Bank analysts stress that tensions in the Middle East and disruptions around the Strait of Hormuz are keeping Oil markets on edge. Brent has risen to 111 USD/bbl as traders assess risks to global energy supply.
The USD/CHF pair gathers strength near 0.7990 during the early European trading hours on Tuesday. The Greenback edges higher against the Swiss Franc (CHF) on a widening monetary policy divergence between the US Federal Reserve (Fed) and the Swiss National Bank (SNB).
The EUR/GBP cross trades on a flat note around 0.8720 during the early European session on Tuesday. Traders will take more cues from the Eurozone Retail Sales and German inflation data, which are due later this week.
The AUD/USD pair trades in a tight range around 0.6900 during the early European trading session on Tuesday.
The European Central Bank (ECB) policymaker, Dimitar Radev said on Tuesday that it is too early to say if rate hike at the April policy meeting is needed.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – catches fresh bids during the Asian session on Tuesday and climbs back closer to a nearly four-week high set the previous day.
Japan Leading Economic Index came in at 112.4, above expectations (112.3) in February
Japan Coincident Index down to 116.3 in February from previous 117.9
