TD Securities notes UK headline CPI matched expectations at 3.3% year-on-year in March, reflecting early post-conflict price effects, especially from motor fuels.
The latest Reuters surveys of economists suggest a notable shift in expectations regarding the trajectory of US monetary policy, with the timing of potential easing likely to come later than previously anticipated.
OCBC strategists Sim Moh Siong and Christopher Wong note that renewed Oil-driven inflation risks are tightening global financial conditions, lifting the US Dollar (USD) as yields rise and risk appetite weakens.
The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, holds steady on Wednesday, hovering near one-week highs as the extension of the US-Iran ceasefire is seen as a temporary pause in military escalation rather than a real breakthrough, suggesting th
Commerzbank’s Dr. Vincent Stamer compares its Euro area inflation projections with European Central Bank (ECB) staff forecasts and concludes they are broadly aligned under the mild Iran War scenario.
Nomura economists argue that the latest energy price surge will be a larger drag on Euro area growth than a persistent inflation shock. They stress weaker labour markets in Northern Europe, limited fiscal space, more spare capacity and slowing wage growth.
OCBC strategists Sim Moh Siong and Christopher Wong highlight that Brent is nearing USD100 as flows through the Strait of Hormuz are unlikely to resume early, pushing markets into an Oil–stagflation channel.
ING’s James Smith notes that UK inflation rose to 3.3% in March on higher fuel costs and is likely to move towards 3.5–4% later in 2026, helped by July’s increase in household energy bills.
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann observe that USD/JPY climbed to 159.37 as the Dollar strengthened. They see scope for a retest of 159.65, with limited follow-through above that level, and expect a broader 157.55–160.50 range.
The EUR/USD pair trades flat at around 1.1745 during the European trading session on Wednesday. The major currency pair consolidates while the US Dollar (USD) edges lower amid hopes of a prolonged standoff between the United States (US) and Iran.
Australia's state of Queensland will pour A$25 million in biodiesel production project in a bid to reduce its reliance on imported fuel amid a severe supply crunch resulting from the war in the Middle East. The investment, equal to some $18 million, would aim to produce 20 million litres of biodiese
GBP/USD trades around 1.3515 on Wednesday, gaining a modest 0.06% at the time of writing, as investors digest the latest inflation figures from the United Kingdom (UK) and assess the outlook for monetary policy on both sides of the Atlantic.