Forex
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).
Mid-Week update for North-American Markets – The narrative has changed for Markets, easing risk-sentiment for Stock Indexes and dragging both the US Dollar and Canadian Dollar. Taking a close look at NA index and currency performance combined with a USD/CAD intraday chart to spot what's next for American Markets.
Forex
Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is only slightly firmer versus the Dollar (USD) despite broad USD weakness, but sees scope for a meaningful CAD recovery after a 1.4% Q1 decline.
Richmond Federal Reserve Bank President Tom Barkin told Reuters on Wednesday that he does not see inflation expectations at the risk of breaking out.
EUR/USD has surged towards 1.1600 due to "war optimism" following US President Donald Trump's comments and the hawkish stance of the ECB, which has created a yield differential favoring the Euro. The "Trump Reversal" seems to hold the key.
West Texas Intermediate (WTI), futures on NYMEX, claws back half of its early losses during the European trading session on Wednesday. Still, the oil price is down 1.5% to near $96.00.
Forex
The Australian Dollar (AUD) is outperforming most of its peers on Wednesday, and extends gains against the US Dollar (USD), reaching the mid-range of 0.6900s, from 0.6833 lows on Tuesday, fuelled by higher risk-appetite amid hopes of a swift end to the Iran war.
Indices
US stock indices surged sharply, but the rally may be a dead cat bounce driven by short-covering and quarter-end positioning amid hopes of a US–Iran de-escalation. Technical signals remain bearish, with major indices still below key resistance levels and longer-term charts flashing reversal patterns. Weak market breadth suggests limited participation, keeping downside risks intact unless critical levels are reclaimed.
Forex
EUR/GBP trades around 0.8725 on Wednesday at the time of writing, down 0.10% on the day.
Forex
The EUR/USD pair extends Tuesday’s recovery on Wednesday, trading 0.3% higher to near 1.1600 during the European session. The major currency pair gains as demand for safe-haven assets has diminished due to increased hopes of a ceasefire in the Middle East.
