DXY fell more than 0.5% on Wednesday, drifting into session lows around 99.30 after opening close to 99.90. The index has been under steady selling pressure all session, carving a series of lower highs on the intraday chart as the ceasefire narrative gained traction.
The Dow Jones Industrial Average (DJIA) climbed around 400 points on Wednesday, or roughly 0.9%, as equities extended their rally into a second session on growing hopes that an end to the US-Iran conflict may be in sight.
The US Dollar (USD) kept its bearish impulse well in place for the second day in a row on Wednesday, this time retreating from recent multi-month tops on the back of the marked improvement in the risk-associated universe and rising hopes of a potential end to the conflict in the Middle East sooner r
AUD/USD advances on Wednesday and trades around 0.6940 at the time of writing, up 0.56% on the day. The pair rebounds, supported by improving risk sentiment that weighs on the US Dollar (USD).
The Pound Sterling (GBP) advances over 0.70% on Wednesday as risk appetite improved amid speculation of an end to the Middle East conflict, following US President Donald Trump's statement, "We're going to be out of Iran pretty quickly." GBP/USD trades above 1.3300 after bouncing off daily lows of 1.
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.
United States EIA Crude Oil Stocks Change registered at 5.451M above expectations (2M) in March 27
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.
