The Euro (EUR) weakens against the US Dollar on Wednesday as the Greenback strengthens after US inflation data came broadly in line with forecasts. At the time of writing, EUR/USD is trading around 1.1587, extending losses for the second straight day.

MUFG’s Head of Research Derek Halpenny highlighted the US Dollar has strengthened less than regression models implied given the initial 50% surge in crude, with EUR/USD down only 1.7% after Oil retraced.

AUD/USD trades around 0.7150 on Wednesday at the time of writing, up 0.42% on the day and extending its winning streak for a fourth consecutive day. The Australian Dollar (AUD) remains supported by growing expectations of monetary tightening from the Reserve Bank of Australia (RBA).

Commerzbank’s Senior Economist Dr. Christoph Balz notes that US CPI data for February show moderate inflation, but stresses that the Federal Reserve is more focused on the PCE deflator and the impact of higher energy prices following the war with Iran.

BNY’s Head of Markets Macro Strategy Bob Savage reports a synchronized selloff in EM sovereign debt as risk aversion rises with the Iran conflict. EM fixed income is seeing widespread net selling, while U.S. Treasuries, Bunds and other high-quality G10 assets benefit.

ING economists Bert Colijn and Marcel Klok note that recent data show the Dutch economy entering 2026 with solid momentum, supported by stronger-than-expected GDP figures and resilient labour markets.

Gold (XAU/USD) trades with a mild downside bias on Wednesday, failing to build on the previous day’s gains as the US Dollar (USD) extends its intraday advance and Treasury yields edge higher after US inflation data came in broadly in line with expectations.

Rabobank’s FX Strategy team expects EUR/USD to remain volatile as higher Oil and food prices stoke inflation concerns and support the Dollar’s safe haven appeal.

Annual inflation in the United States (US), as measured by the change in the Consumer Price Index (CPI), remained unchanged at 2.4% in February, the US Bureau of Labor Statistics (BLS) reported on Wednesday. This print came in line with the market expectation.

United States Consumer Price Index Core s.a up to 333.51 in February from previous 332.79

United States Consumer Price Index ex Food & Energy (MoM) meets expectations (0.2%) in February

United States Consumer Price Index ex Food & Energy (YoY) in line with forecasts (2.5%) in February

United States Consumer Price Index n.s.a (MoM) in line with forecasts (326.79) in February

United States Consumer Price Index (MoM) in line with forecasts (0.3%) in February

United States Consumer Price Index (YoY) meets forecasts (2.4%) in February

ABN AMRO economists assess how Iran-driven energy shocks could alter Federal Reserve policy and thus the US Dollar.

OCBC strategists Christopher Wong and Sim Moh Siong highlight that Gold has extended its recovery as the Dollar and Oil prices retreat and risk sentiment stabilises on signs the Iran conflict may be nearing an end.

MUFG’s Head of Research Derek Halpenny reports that the IEA has proposed a record Oil reserve release of 300–400 million barrels, potentially covering 15–20 days of Strait of Hormuz flows and easing supply constraints for several weeks.

Brazil Retail Sales (MoM) came in at 0.4%, above forecasts (-0.1%) in January

Nomura’s Global Markets Research team revises its Euro area HICP projections higher on updated Oil and gas assumptions. The bank now sees HICP at 2.7% in 2026 and 2.2% in 2027, with inflation above target in early 2026.

Societe Generale analysts describe EUR/USD as quiet within its recent range, with spot capped by the 200‑day moving average at 1.1676 ahead of US CPI. They flag support at 1.1560 and resistance at 1.1735, alongside sizeable nearby option expiries.

India M3 Money Supply climbed from previous 10.9% to 11.5% in February 16

TD Securities’ Global Strategy Team highlights that recent geopolitical tensions and a weaker 3-year auction pushed US rates higher, with attention now turning to February CPI.

ING’s Francesco Pesole notes the Dollar remains closely tied to Oil volatility, with recent Brent swings driven by conflicting headlines on Middle East tensions and a potential record IEA reserve release.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that crude Oil prices are firmer as markets focus on security of shipping through the Strait of Hormuz.

According to Reuters, the International Energy Agency (IEA) is set to announce a recommendation regarding the potential release of emergency Oil reserves at 13:00 GMT. The move comes as governments seek to ease pressure on energy markets and contain rising fuel costs.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that US February CPI is due, with headline and core expected to remain at 2.4% and 2.5% year-on-year, while super core services stays stuck at 2.7%.

United States MBA Mortgage Applications: 3.2% (March 6) vs previous 11%

West Texas Intermediate (WTI) US Oil trades around $86.30 on Wednesday at the time of writing, up 1.20% on the day as markets remain focused on escalating geopolitical tensions in the Middle East and potential policy responses aimed at stabilizing global energy supply.

Germany 10-y Bond Auction climbed from previous 2.73% to 2.89%