BNP Paribas argues that European Union (EU) manufacturing firms enter the 2026 energy shock from Iran with historically low non-performing loan (NPL) ratios, suggesting stronger financial health than in 2022.
UOB economist Lee Sue Ann highlights that Australian inflation remains elevated, with housing and electricity key drivers, even as trimmed mean CPI tracks slightly below earlier RBA projections.
Silver (XAG/USD) pauses its intraday advance on Wednesday, consolidating below the daily high as initial optimism around US-Iran ceasefire efforts fades following Iran’s response.
The AUD/USD pair fell to near the 0.6960 price zone amid mixed Australian inflation data and shifting global risk sentiment, keeping traders cautious.
The Pound Sterling (GBP) reverses course on Wednesday as the Greenback edges higher on the day, as risk appetite deteriorates following news reports that Iran's nuclear Bushehr power plant was hit.
Nordea’s Group Chief Economist Helge J. Pedersen notes that the Danish parliamentary election has produced a highly fragmented Folketing, with 12 parties entering parliament and no majority for either the red or blue bloc. The Moderates, led by Lars Løkke Rasmussen, now hold the balance of power.
West Texas Intermediate (WTI) trades around $88.20 on Wednesday at the time of writing, up 0.40% on the day, attempting to stabilize after a recent pullback.
Gold (XAU/USD) extends its recovery on Wednesday after falling to four-month lows earlier this week, as early buyers step in following a sharp selloff.
TD Securities strategists Oscar Munoz and Eli Nir argue that the Federal Reserve (Fed) faces conflicting signals as the Iran conflict drives an Oil shock.
The Euro (EUR) trades under pressure against the US Dollar (USD) on Wednesday, as the Greenback remains well supported amid conflicting headlines surrounding US-Iran ceasefire efforts.
Brown Brothers Harriman’s (BBH) Elias Haddad notes that global risk sentiment has improved as markets position for a potential conflict resolution involving Iran, with DXY consolidating below 100.00.
Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is drifting lower as positive US Dollar momentum pulls USD/CAD away from their fair value estimate.
UOB economist Lee Sue Ann highlights a hawkish pivot by the Bank of England (BoE), with the Bank Rate held at 3.75% and a unanimous 9–0 vote. The report removes prior expectations for three 2026 cuts, now forecasting the GBP Repo Rate steady at 3.75% through 4Q26 as inflation risks dominate.
ABN AMRO economists Bill Diviney and Jan-Paul van de Kerke note that the ECB is likely to respond to the renewed energy shock with additional tightening focused on preventing second-round effects.
TD Securities’ Senior Commodity Strategist Ryan McKay warns that Oil markets face escalating tightness as flows through the Strait of Hormuz remain severely restricted and Gulf production cuts exceed 10m b/d.
ING’s Carsten Brzeski warns that Germany’s long-awaited cyclical rebound has been dented after the Ifo index fell sharply in March, with expectations suffering their worst hit since the Russian invasion of Ukraine.
BNY’s Head of Markets Macro Strategy Bob Savage reports that the Euro faces conflicting forces as ECB President Christine Lagarde warns of potential forceful tightening if energy-driven inflation persists, while growth risks rise.
GBP/JPY trades within a tight range on Wednesday, with choppy price action as ongoing developments in the US-Israel war with Iran continue to drive volatility across the FX space, while traders show limited reaction to recent economic data.
USD/JPY trades around 159.00 on Wednesday at the time of writing, up 0.18% on the day. The pair continues to draw support from sustained demand for the US Dollar (USD) in an environment marked by persistent geopolitical uncertainty.
TD Securities expects Norges Bank to keep its policy rate unchanged at 4.00%, noting stubbornly sticky inflation and risks of re-acceleration after the Middle East crisis and energy price shock.
Brown Brothers Harriman’s (BBH) Elias Haddad highlights that AUD/USD is trading near the lower end of its recent 0.6900–0.7200 range. February inflation was slightly softer than expected, but Haddad expects Australian price pressures to accelerate as higher energy costs feed through.
ABN AMRO economists revise their Eurozone outlook after the Iran-related energy shock, expecting weaker growth but notably higher inflation. They now see the European Central Bank (ECB) hiking twice in Q2, front‑loading tightening to prevent second‑round effects.
ING’s James Smith outlines scenarios for UK inflation, with current energy prices implying a brief 4% peak in autumn and ING’s base case of easing disruption pointing to a 3.5% peak in September.
Commerzbank’s Chief Economist Dr. Jörg Krämer warns that the sharp March drop in the German Ifo Business Climate Index reflects rising war-related risks rather than current damage.
Bank of England Monetary Policy Committee member Megan Greene said on Wednesday that if their inflation forecasts are right, there is a risk inflation expectations will rise, per Reuters.
Citing informed sources on the matter, Iran's Fars news agency reported on Wednesday that Tehran doesn't see truce and talks as viable in current conditions, despite the United States' increased efforts to establish a ceasefire and begin direct negotiations.
Brown Brothers Harriman’s (BBH) Elias Haddad notes GBP/USD is challenging resistance at its 200-day moving average near 1.3434 as UK inflation remains well above the Bank of England's (BoE) 2% target.
BNY’s Head of Markets Macro Strategy Bob Savage highlights stronger Japanese activity data, with the Economic Trend Index and machine tool orders pointing to a bottoming-out in growth.
TD Securities strategist Andrew Kelvin notes that the Bank of Canada (BoC) is stressing downside risks to growth and appears willing to look through an energy-driven inflation shock.
ING strategists Ewa Manthey and Warren Patterson report Gold has extended gains above $4,600 as it rebounds from a nine‑day losing streak.
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