Scotiabank’s global FX strategy team reports broad Dollar strength as G10 performance realigns with early US/Iran conflict patterns. They stress fragile risk sentiment as markets reassess prolonged conflict risks, central bank paths and violent yield repricing.

Scotiabank’s Analyst Team notes the Canadian Dollar is modestly firmer versus the Dollar and leading G10 peers, echoing its earlier conflict-phase outperformance. They highlight narrowing yield spreads and a relatively muted Bank of Canada meeting as key drivers.

EUR/GBP edges higher on Friday, recovering losses recorded in the previous day after the European Central Bank (ECB) and Bank of England (BoE) monetary policy announcements.

Christopher Waller, a member of the Federal Reserve (Fed), said that based on the jobs report alone, he was planning to dissent in the monetary policy decision, but inflation has become more of a concern.

USD/JPY trades around 158.70 on Friday at the time of writing, up 0.61% on the day, staging a clear rebound after Thursday’s sharp decline. The move comes as the US Dollar (USD) regains traction following a bout of volatility, with markets reassessing the outlook for US monetary policy.

Canada New Housing Price Index (YoY): -2.1% (February) vs -2.3%

Canada New Housing Price Index (MoM) registered at 0.3% above expectations (-0.3%) in February

Canada Retail Sales (MoM) came in at 1.1% below forecasts (1.5%) in January

Canada Industrial Product Price (MoM) came in at 0.4% below forecasts (1.1%) in February

Canada Raw Material Price Index came in at 0.6% below forecasts (2.4%) in February

Canada Retail Sales ex Autos (MoM) below forecasts (1.2%) in January: Actual (0.8%)

OCBC’s Sim Moh Siong highlights that crude briefly surged toward USD120/bbl on Iranian attacks before easing as US officials signalled supply support and Israel suggested faster de-escalation.

OCBC’s Christopher Wong reports that Gold has come under pressure as rising global yields and renewed inflation risks reduce expectations for near-term rate cuts, prompting ETF outflows and stress-driven liquidation.

Gold (XAU/USD) struggles to gain traction on Friday following a sharp two-day decline that pushed prices to their lowest level since early February, near the $4,500 mark.

Mexico Private Spending (YoY): 4% (4Q) vs 1.6%

Mexico Private Spending (QoQ) fell from previous 1.1% to 1% in 4Q

India FX Reserves, USD down to $709.76B in March 9 from previous $716.81B

GBP/USD retreats on Friday, trading around 1.3380 at the time of writing, down 0.39% on the day, after Thursday’s strong rally following the Bank of England (BoE) decision.

China FDI - Foreign Direct Investment (YTD) (YoY) remains unchanged at -5.7% in February

Russia Interest Rate Decision in line with expectations (15%)

The Indian Rupee (INR) extends its downfall against the US Dollar (USD) on Friday after a holiday the previous day.

Brown Brothers Harriman’s Elias Haddad notes that recent political comments briefly steadied risk sentiment, but renewed risk aversion has lifted the Dollar, Oil and bond yields while pressuring equities. With no key data due, focus is on Fed speakers.

Silver price (XAG/USD) trades in a tight range around $72.80 during the European trading session on Friday. The white metal holds onto Thursday’s recovery move, which was driven by weakness in the US Dollar (USD).

European Central Bank (ECB) policymaker and Governor of the Central Bank of Ireland Gabriel Makhlouf stated during European trading hours on Friday that the central bank doesn’t have a pre-determined rate path and the decision would be made meeting by meeting.

Eurozone Trade Balance s.a. climbed from previous €11.6B to €12.1B in January

Eurozone Trade Balance n.s.a. registered at €-1.9B, below expectations (€12.8B) in January

According to MUFG’s Derek Halpenny, the ECB’s communication and achievement of its price stability goal leave it in a relatively better position than the BoE, but he is sceptical that higher front-end Euro yields will sustain Euro strength.

Silver prices (XAG/USD) rose on Friday, according to FXStreet data. Silver trades at $73.17 per troy ounce, up 0.45% from the $72.84 it cost on Thursday.

Italy Global Trade Balance registered at €1.089B, below expectations (€5.6B) in January

Italy Trade Balance EU up to €-1.138B in January from previous €-2.447B