Markets were on edge following another rollercoaster week as U.S. President Donald Trump again extended a pause on strikes against Iran's energy ‌facilities into April ⁠even as ⁠Washington and Tehran offered starkly conflicting accounts of diplomatic progress. The Pentagon is also looking at sending up to 10,000 additional ground troops to the Middle East, the Wall Street Journal reported on Thursday, doing little to bolster investor hopes of an imminent end to the war. That kept the dollar bid as investor ...

After decades as the world's reserve currency and the backbone of global trade, the US dollar's dominance is being tested. Concerns about rising US debt, unpredictable trade policy, and geopolitical tensions have prompted some countries and investors to rethink the heavy reliance on the greenback. This poses a persistent question.Is the world ddollarizing. And if so, to what. >> On paper, the euro is the obvious alternative.if it's backed by the world's second largest economy and a deep rules-based framewor ...

Highlights Dollar climbs as stocks tumble on Iran war IEA's Birol warns crisis worse than 1970s oil shocks Japan says ready to counter forex volatility The dollar rose on Monday as escalating retaliatory threats in the West Asia conflict sent stocks tumbling and lifted demand for safe-haven assets.Hopes for an off-ramp to hostilities dimmed over the weekend, with US President Donald Trump threatening to strike Iran’s electricity grid and Tehran vowing to hit back at its neighbours’ infrastructure.The he ...

The week ending 20 March was particularly packed with meetings of central banks, most of which signalled or at least hinted at upcoming hikes to tackle expected rising inflation. Some major currencies, like the euro, made gains while the dollar and gold declined as participants priced in hawkishness. This article summarises the reaction to the central banks’ statements then looks briefly at the charts of XAUUSD and GBPUSD.The Reserve Bank of Australia (RBA), Bank of Canada (BoC), Federal Reserve (Fed), Bank ...

Key TakeawaysPrecious metals experienced a sharp sell-off, with Spot Silver plunging over 5% to $68.97/oz and Spot Gold dropping 2% to $4,556.90/oz.The Pentagon is deploying thousands of additional Marines and three warships to the Middle East following claims by Iran that recent strikes failed to halt its weapons production.UK 10-year Gilt yields surged 16 basis points to reach 5%, marking the first time the benchmark has hit this level since 2008.Market expectations for monetary tightening have shifted, w ...

Core Viewpoint - The ongoing U.S.-Israeli war on Iran has shifted investor expectations regarding Federal Reserve interest rate cuts, with the likelihood of even one cut now seen as distant, while other central banks are preparing for rate hikes in response to rising energy prices and inflation concerns [1][10]. Currency Movements - The euro is trading at $1.1569, reflecting a weekly gain of 1.4%, while the yen has gained 1.2% to stabilize around 157.88, and sterling is up more than 1.5% at $1.3422 [2][10]. - The Australian dollar is trading just below 71 cents, achieving a weekly gain of 1.5% following the Reserve Bank of Australia's second consecutive interest rate hike [7][11]. Central Bank Actions - The European Central Bank (ECB) has maintained rates but is expected to discuss potential hikes next month due to inflation driven by energy prices, contrasting with the Fed's more cautious approach [10][11]. - The Bank of Japan has indicated the possibility of a rate hike as soon as April, surprising investors who anticipated a further decline in the yen [11]. - The Bank of England has also kept rates on hold but indicated readiness to act, leading to significant market reactions [11]. Energy Prices and Economic Outlook - Benchmark Brent crude futures have surged approximately 50% since the onset of the U.S.-Israeli war on Iran, severely impacting Middle Eastern energy exports [10]. - The dollar index remains steady at 99.359 but is on track for a 1.1% weekly decline, the largest since late January, although analysts believe a prolonged decline is unlikely [8][11]. - The ongoing conflict is expected to increase the U.S. dollar's value due to safe-haven demand and the U.S. position as an energy exporter [9][11].

The dollar index (DXY00) today is down by -0.53%.  Today's stock rebound has diminished liquidity demand for the dollar.  The dollar added to its losses today after T-note yields fell, weakening the dollar's interest rate differentials. Today's US economic news was mixed for the dollar after the Feb Empire manufacturing index fell more than expected, but Feb manufacturing production and the Mar NAHB housing market index rose more than expected. More News from Barchart The US Feb Empire manufacturing su ...

The dollar index (DXY00) today is up +0.27%. The dollar is seeing support from today's upward spike in oil prices to the $100 per barrel area, which is hawkish for Fed policy.  Also, higher oil prices are beneficial for the dollar since the US is the world's largest oil-producing country. More News from Barchart The dollar continued to be undercut by last Friday's weak US economic news, which included the -92,000 decline in US Feb payrolls and the -0.2% m/m decline in US Jan retail sales. Swaps market ...

Group 1 - Investors sold government bonds, indicating a shift in market sentiment towards safer assets [1] - The Swiss franc rose to its highest level against the euro since 2015, reflecting increased safe-haven demand [1]

Core Viewpoint - The U.S. dollar is strengthening against other currencies, particularly the euro and yen, amid the ongoing conflict in the Middle East, reaffirming its status as a safe haven in currency markets [1]. Group 1: Currency Performance - The dollar has shown significant strength against the euro since the onset of the Iran conflict [1]. - The trend of de-dollarization appears to be reversing as the dollar gains prominence in the current geopolitical climate [1]. Group 2: Market Implications - The ongoing crisis in the Middle East is contributing to the dollar's outperformance compared to its rivals, highlighting its role as a preferred currency during times of uncertainty [1].