US Dollar Retreats Ahead of Central Bank Meetings

While the Iran War continues, investors’ focus may shift away from its impact on oil supply to its impact on inflation and interest rates.

With the Strait of Hormuz still being contested, and President Trump threatening more attacks on Iran oil distribution sites, US Crude Oil is down 1.5% this morning trading near $97.00/bbl, while Brent Crude is up 0.2%, trading near $103.00/bbl.

With gasoline holding steady near $3.00/gallon, what has become clear is that energy prices have climbed into a higher range that could last for some time, putting upward pressure on inflation.

This week, several central banks are holding meetings. The Reserve Bank of Australia is expected to raise its benchmark rate by 0.25% to 4.10% early Tuesday morning. On Wednesday, everyone else is expected to hold their key rates steady including the Federal Reserve Board (3.75%) and the Bank of Canada (2.25%), followed by the Bank of Japan (0.75%), Bank of England (3.75%), and the European Central Bank (2.15%) on Thursday. In addition to the rate decisions, commentary on the economy and inflation, plus their monetary policy outlooks may be closely monitored. 

The US Dollar has been falling back ahead of these meetings enabling the Australian Dollar to rally 1.1%, while the Euro, Loonie, Pound and Yen are up 0.3% to 0.6%. In metals action, Gold is down 0.9%, and Silver is down 2.5%.

China-sensitive markets have been moving up on better-than-expected China retail sales (2.8% vs Street 2.5%) and industrial production (6.3% vs Street 5.1%) reports for February. Copper is up 0.6%, while the Hang Seng rose 1.5%.

US index futures are climbing this morning with NASDAQ Futures up 1.1% and Dow Futures up 0.7%. In Europe today, the DAX and the FTSE are both up 0.6%.

Share:

Read More:

Terms and Conditions:


This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, Advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIA Wealth Management Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.