Forex News
- Silver price bounces back strongly to near $74.00; however, its outlook remains grim.
- Thursday’s sell-off in the US Dollar offered support to the Silver price.
- Fears of policy divergence between the Fed and other global central banks have diminished.
Silver price (XAG/USD) holds onto Thursday’s recovery move around $74 during the Asian trading session on Friday. The white metal recovered the previous day after revisiting the February low around $64.00.
The Silver price attracted significant bids after a sharp decline in the US Dollar (USD), which was driven by diminished fears of policy divergence between the Federal Reserve (Fed) and other global central banks.
Technically, a lower US Dollar makes the Silver price an attractive risk-reward trade for investors.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, declined over 1% to near 99.00 on Thursday, but has risen slightly to near 99.35.
Comments from global central banks such as the Bank of Japan (BoJ), the Bank of England (BoE), and the European Central Bank (ECB) signaled that they are unlikely to ease their monetary policy conditions amid de-anchoring inflation expectations across the globe due to higher oil prices.
On Wednesday, the US Dollar rallied after the Federal Reserve’s (Fed) monetary policy outcome, in which Chairman Jerome Powell signaled that interest rate cuts are not feasible unless inflation resumes progress towards the central bank’s 2% target.
However, the scenario of an extended pause or tight monetary conditions by global central bankers is theoretically an unfavorable scenario for non-yielding assets, such as Silver.
Meanwhile, conflicts in the Middle East, which involve the US, Israel, and Iran, are expected to continue limiting the downside in safe-haven assets, such as Silver. Investors tend to shift to the safe-haven fleet in a heightened geopolitical environment.
Silver technical analysis
XAG/USD trades slightly higher at around $74. However, the near-term bias is bearish as price extends its decline below the 20-day Exponential Moving Average (EMA), which now tracks above spot and acts as dynamic resistance near $81.30. The sequence of lower closes from the mid-$90s to the low-$70s underscores persistent selling pressure, while the RSI slipping below 40.00 for the first time in 11 months is confirming downside momentum without reaching oversold territory. This setup keeps sellers in control unless the price can recover and stabilize back above the broken average.
Immediate resistance appears at $76.50, where a prior reaction high aligns with the descending short-term structure, followed by a stronger barrier around $81.00, capped by the 20-day exponential moving average. A sustained break above $81.00 would weaken the current bearish tone and open a move toward the $84.00 area. On the downside, initial support is located at round-level $70, followed by Thursday's low of $65.51.
(The technical analysis of this story was written with the help of an AI tool.)
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
- The Canadian Dollar edges up after a sharp sell-off on Thursday.
- A sharp correction in the oil price dragged the Canadian Dollar.
- The US Dollar plummeted on Thursday after hawkish commentsby from global central banks.
The Canadian Dollar (CAD) trades marginally higher against its major currency peers in the Asian trading session on Friday. The USD/CAD pair ticks down to near 1.3735 in an attempt to regain ground after a sharp underperformance on Thursday, which was driven by weakness in the Oil price, but is still close to its over two-week high of 1.3748.
Canadian Dollar Price Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.20% | 0.12% | 0.28% | -0.07% | 0.06% | -0.13% | 0.05% | |
| EUR | -0.20% | -0.08% | 0.09% | -0.26% | -0.13% | -0.33% | -0.14% | |
| GBP | -0.12% | 0.08% | 0.19% | -0.19% | -0.06% | -0.25% | -0.06% | |
| JPY | -0.28% | -0.09% | -0.19% | -0.34% | -0.23% | -0.41% | -0.21% | |
| CAD | 0.07% | 0.26% | 0.19% | 0.34% | 0.12% | -0.06% | 0.13% | |
| AUD | -0.06% | 0.13% | 0.06% | 0.23% | -0.12% | -0.19% | -0.00% | |
| NZD | 0.13% | 0.33% | 0.25% | 0.41% | 0.06% | 0.19% | 0.19% | |
| CHF | -0.05% | 0.14% | 0.06% | 0.21% | -0.13% | 0.00% | -0.19% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Given that Canada is the largest exporter of oil to the United States (USD), the scenario of a correction in the oil price weighs on the Canadian Dollar.
WTI oil price has retraced sharply to near $92.50 after failing to return above $100 as US President Donald Trump has told Israeli Prime Minister Benjamin Netanyahu not to repeat attacks on Iranian energy infrastructure, Reuters reports. Trump also clarified that he was not aware that Tel Aviv would be launching attacks on the South Pars gas field, which is the world’s largest gas field.
In addition to that, signs of readiness from European nations and Japan to contribute to unblocking passage if energy products through the Strait of Hormuz have also weighed on the oil price.
This week, the Canadian Dollar remained heavily volatile amid the Bank of Canada’s (BoC) monetary policy announcement on Wednesday, in which it left interest rates unchanged at 2.25%.
In Friday’s session, investors will focus on the Canadian Retail Sales data for January, which will be published at 12:30 GMT. Month-on-Month Retail Sales are estimated to have grown 1.5% after declining 0.4% in DECEMBER.
Meanwhile, the US Dollar (USD) gains slightly after a sharp sell-off on Thursday. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is up 0.2% to near 99.35. On Thursday, the USD Index declined over 1% to near 99.00.
The US Dollar came under pressure after monetary policy announcements by the Bank of Japan (BoJ), the Bank of England (BoE), and the European Central Bank (ECB), in which they delivered a hawkish commentary on the interest rate outlook, which diminished fears of policy divergence with the Federal Reserve (Fed).
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
- NZD/USD gains ground to near 0.5880 in Friday’s Asian session.
- New Zealand recorded a monthly trade deficit of NZ$257 million in February, narrower than expected.
- Fed kept interest rates steady in the 3.5%–3.75% range on Wednesday; officials signal one projected rate cut in 2026.
The NZD/USD pair gathers strength to around 0.5880 during the Asian trading hours on Friday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) on a narrower-than-expected New Zealand trade deficit. Traders will closely watch the ongoing conflict in the Middle East, which could impact the currency pair.
Data released by Statistics New Zealand on Friday showed that New Zealand recorded a monthly trade deficit of NZ$257 million in February, compared to a NZ$627 million trade deficit in January. This figure was narrower than market expectations of a NZ$470 million shortfall. The Kiwi strengthens against the USD following the upbeat economic data.
However, weaker New Zealand's Gross Domestic Product (GDP) might cap the upside for the pair. New Zealand’s economy grew by 0.2% QoQ in the fourth quarter (Q4), compared with a 0.9% expansion (revised from 1.1%) in Q3. This reading came in weaker than the expectation of 0.4%. The fourth-quarter GDP expanded by 1.3% YoY, compared with a rise of 1.1% (revised from 1.3%) in Q3, while falling short of the 1.7% growth forecast.
The US Federal Reserve (Fed) on Wednesday decided to maintain its target range for the federal funds rate at 3.50-3.75%, as widely expected. Fed policymakers signaled a quarter of a percentage point rate cut by the end of this year, a view that on the surface was unchanged from their last set of projections in December.
New Zealand Dollar FAQs
The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.
The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.
Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar’s (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate.
The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called ‘commodity currencies’ such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.
- AUD/USD weakens to around 0.7080 in Friday’s Asian session.
- Australia’s Unemployment Rate rose to 4.3% in February, below the market consensus.
- PBOC kept the LPR rates steady in March, as expected.
The AUD/USD pair trades in negative territory near 0.7080 during the Asian trading hours on Friday. The Australian Dollar (AUD) softens against the US Dollar (USD after Australia’s unemployment rate increased in February.
Data released by the Australian Bureau of Statistics (ABS) on Thursday showed that Unemployment Rate climbed to 4.3% in February from 4.1% in January. The figure came in above the market consensus of 4.1%.
The weaker Australia’s employment data cooled expectations for interest rate hikes from the Reserve Bank of Australia (RBA), which could weigh on the Aussie. Money markets lowered the probability of a May 2026 rate hike from 61% down to 57% following the jobs data.
The People's Bank of China (PBOC) maintained its benchmark lending rates on Friday. The one-year and five-year Loan Prime Rates (LPRs) were at 3.00% and 3.50%, respectively.
The Federal Reserve (Fed) held interest rates steady at a target range of 3.50% to 3.75% following its March meeting on Wednesday. The median "dot plot" projection still suggested one 25-basis-point (bps) rate cut later in 2026, though some officials now expect no cuts at all this year.
Fed Chair Jerome Powell said during the press conference that the ongoing war in Iran has created an "energy shock" and heightened uncertainty, complicating the path for future policy.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
The People’s Bank of China (PBOC), China's central bank, announced to leave its Loan Prime Rates (LPRs) unchanged on Friday. The one-year and five-year LPRs were at 3.00% and 3.50%, respectively.
Market reaction to the PBoC interest rate decision
At the time of writing, the AUD/USD is trading 0.08% lower on the day to trade at 0.7081.
PBOC FAQs
The primary monetary policy objectives of the People's Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market.
The PBoC is owned by the state of the People's Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts.
Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi.
Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector.
- WTI price edges lower to near $93.50 in Friday’s early Asian session.
- US and Israeli leaders try to ease war concerns.
- A prolonged conflict in the Middle East could boost the WTI price.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $93.50 during the early Asian trading hours on Friday. The WTI price declines as the leaders of the US and Israel sought to reassure traders rattled by damage to major Persian Gulf energy facilities.
US President Donald Trump said that he’s “not putting troops anywhere” after being asked about the possibility of deploying US ground forces, while Israeli Prime Minister Benjamin Netanyahu stated that Israel would refrain from more attacks on Iranian energy facilities.
These remarks followed the biggest day of strikes on energy assets since the war began on February 18, including extensive damage to the world’s biggest liquefied natural gas plant in Qatar that will take years to repair.
A significant surge in US crude oil inventories could also weigh on black gold. According to the US Energy Information Administration (EIA) weekly report, crude oil stockpiles in the US for the week ending March 13 climbed by 6.156 million barrels, compared to a rise of 3.824 million barrels in the previous week. The market consensus was for a 400,000-barrel increase.
Traders will closely monitor geopolitical headlines for indications on how long the war will last. Iranian officials stated that the response to Israel’s assault on South Pars “is underway and not yet complete.” Any signs of escalating tensions in the Middle East could raise fear of supply disruption and boost the WTI price in the near term.
(This story was corrected on March 20 at 06:05 GMT to say, in the third paragraph, that these remarks followed the biggest day of strikes on energy assets since the war began on February 28, not February 18.)
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Japanese Prime Minister Sanae Takaichi attempted to reiterate her support for US President Donald Trump on Thursday after the president this week seemed to complain that Japan was among the nations that did not quickly join his call to help protect the Strait of Hormuz.
Japan avoided either endorsing or directly criticizing the US-Israeli strikes on Iran that began on February 28 and instead called for de-escalation. The conflict is highly unpopular in Japan, whose post-World War II constitution restricts its military to self-defense.
Earlier Thursday, the leaders of five European countries and Japan issued a joint statement demanding that Iran stop attacks on the Strait of Hormuz that block commercial shipping and said they are ready to contribute to “appropriate efforts” to ensure ships can pass safely through the strait, though it is unclear what that entails.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
Israel's Prime Minister Benjamin Netanyahu said that Israel "acted alone" in attacking an Iranian gas field, as tensions rise over strikes on energy infrastructure across the region, BBC reported on Thursday.
Key quotes
Iran has no capacity to enrich uranium or make ballistic missiles after 20 days of war.
It is too soon to tell if Iranians will take to the streets.
The US and Israel destroyed Iran's fleet in the Caspian Sea.
There are many possibilities for a ground component, I won't share what they are.
I won't put a stopwatch on ending the war.
Israel acted alone against South Pars, Trump asked us to hold off on future such attacks.
Market reaction
At the time of writing, the West Texas Intermediate (WTI) is down 0.64% on the day at $93.40.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
European Union (EU) leaders called for a moratorium on military strikes on energy and water facilities in the Middle East amid growing concerns about the impact of the Iran war on the global economy, Reuters reported on Thursday.
"The European Council calls for de-escalation and maximum restraint, the protection of civilians and civilian infrastructure and full respect of international law by all parties," the leaders of the EU's 27 countries said in written conclusions of a summit in Brussels.
The EU leaders welcomed "the increased efforts announced by Member States, including through strengthened coordination with partners in the region, to ensure freedom of navigation in the Strait of Hormuz, once the conditions are met."
Market reaction
At the time of writing, the West Texas Intermediate (WTI) is down 0.54% on the day at $93.47.
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
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Our dedicated focus on forex news and insights empowers you to capitalise on investment opportunities in the dynamic FX market. The forex landscape is ever-evolving, characterised by continuous exchange rate fluctuations shaped by vast influential factors. From economic data releases to geopolitical developments, these events can sway market sentiment and drive substantial movements in currency valuations.
At Rakuten Securities Hong Kong, we prioritise delivering timely and accurate forex news updates sourced from reputable platforms like FXStreet. This ensures you stay informed about crucial market developments, enabling informed decision-making and proactive strategy adjustments. Whether you’re monitoring forex forecasts, analysing trading perspectives, or seeking to capitalise on emerging trends, our comprehensive approach equips you with the insights needed to navigate the FX market effectively.
Stay ahead with our comprehensive forex news coverage, designed to keep you informed and prepared to seize profitable opportunities in the dynamic world of forex trading.
