Category: EU

Asset Summary – Wednesday, 8 April

US DOLLAR experienced a decline, falling to a four-week low, primarily due to a perceived easing of tensions in the Middle East. President Trump’s delay in potential strikes against Iran, coupled with reports of a proposed negotiation framework from Iran, significantly reduced geopolitical risk premiums. This de-escalation led to a decrease in oil prices, alleviating inflationary pressures and diminishing the dollar’s appeal as a safe-haven asset. Furthermore, the anticipation of upcoming US CPI data adds uncertainty, as investors seek to understand the conflict’s impact on domestic prices, contributing to the currency’s broad weakening, particularly against the Australian and British currencies.

BRITISH POUND experienced a significant boost, appreciating to near its highest value since late February, driven by a US-Iran ceasefire agreement. This truce, aimed at de-escalating Middle East tensions, has fostered a risk-on sentiment in the markets. The subsequent drop in oil and gas prices has led investors to reduce expectations for future interest rate hikes by the Bank of England, which could temper further gains for the currency in the long term, as the market now anticipates fewer rate increases than previously projected.

EURO has experienced a surge in value, reaching multi-month highs, primarily driven by a ceasefire agreement between the US and Iran. This development, while easing immediate geopolitical anxieties in the Middle East, has broader implications for the European Central Bank’s (ECB) monetary policy. Reduced oil and gas prices, resulting from the ceasefire, have tempered expectations for aggressive interest rate hikes by the ECB. Market sentiment now leans towards fewer rate increases than previously anticipated, which could potentially limit further appreciation of the currency in the near term.

JAPANESE YEN experienced a notable recovery, strengthening against the dollar. This appreciation followed a period of weakness where it neared a key level, but a reported agreement for a temporary ceasefire between the US, Iran, and Israel spurred renewed confidence. The potential for peace talks, alongside Japan’s diplomatic efforts to ensure stability and energy security, contributed to the yen’s resurgence. Further bolstering the currency were signals from Japanese authorities suggesting intervention to curb yen depreciation, and growing anticipation of a potential interest rate increase by the Bank of Japan in the near future.

CANADIAN DOLLAR is gaining strength against the US dollar, primarily due to easing geopolitical tensions and a resulting shift away from safe-haven assets. A potential ceasefire agreement has diminished concerns about an energy-driven inflation surge, reducing pressure on the Bank of Canada to maintain an aggressively restrictive monetary policy. While domestic manufacturing data remains weak, the de-escalation of international conflict is currently having a greater impact than US economic data, although looming deadlines regarding infrastructure strikes could introduce renewed volatility.

AUSTRALIAN DOLLAR is showing strength as tensions ease between the US and Iran. The temporary suspension of military operations and potential for broader negotiations have weakened the US dollar and improved global risk sentiment, benefiting the Australian currency. With a ceasefire in place, pressure may ease on the Reserve Bank of Australia to aggressively tighten monetary policy, as previously anticipated due to concerns about elevated energy prices stemming from potential disruptions to the Strait of Hormuz. However, it is important to note that supply conditions may not normalize immediately, even with a lasting agreement, which could limit the Australian dollar’s upside potential.

DOW JONES is poised for significant gains following an agreement for a ceasefire between the US and Iran, which has calmed market anxieties surrounding potential large-scale conflict and energy price spikes. This improved risk sentiment is expected to drive investment into the market, pushing the index higher. The positive developments are also anticipated to ease concerns about energy-driven inflation, further bolstering the appeal of equities. Increased investment in speculative technology stocks and airlines, spurred by the improved outlook, should also contribute to the index’s upward trajectory.

FTSE 100 experienced a significant boost, driven by de-escalation hopes in the Middle East following a US-Iran ceasefire agreement. This agreement spurred a risk-on sentiment, benefiting a wide range of sectors within the index. While lower oil prices negatively impacted energy giants like BP and Shell, the broader market rallied, with notable gains in mining companies such as Antofagasta, Fresnillo, Anglo American and EasyJet. Financial institutions and pharmaceutical companies also contributed to the overall positive performance, indicating a generally optimistic outlook for the index in the short term.

DAX experienced a significant surge, climbing over 5% to reach a one-month high near 24,100, primarily fueled by positive geopolitical developments. The agreement for a ceasefire between the US and Iran, coupled with Israel’s agreement to halt airstrikes and assurances regarding the Strait of Hormuz, have instilled confidence in the market. This optimism, especially surrounding the potential resumption of oil and gas flows, triggered a broad rally across most sectors, with notable gains in energy-sensitive stocks such as Siemens Energy and Lufthansa, suggesting a positive outlook for the index’s near-term performance. The financial sector, represented by Commerzbank and Deutsche Bank, also contributed strongly to the upward momentum.

NIKKEI experienced a significant boost, with both the Nikkei 225 and Topix indexes reaching over one-month highs. This surge appears to be fueled by increased risk appetite following reports of a potential ceasefire agreement between the US, Iran, and Israel, which could de-escalate tensions in the Middle East. Optimism around peace negotiations and Japan’s efforts to secure its energy supplies, combined with strong performance in tech stocks and rallies in power companies, banks, and carmakers, are all contributing factors. The gains in specific tech companies like Kioxia Holdings, Advantest, and SoftBank Group further underscore the positive market sentiment.

GOLD experienced a significant price surge as geopolitical tensions eased following a ceasefire agreement between the US and Iran, calming fears of energy-related inflation. The agreement led to lower energy prices and shifted expectations regarding future interest rate policy, with the market now anticipating the Federal Reserve will likely hold rates steady. This change in interest rate outlook is particularly supportive for gold, as its attractiveness diminishes when interest rates are high. Despite this recent upward movement, gold has still faced a net decrease in value since the onset of the Iran war, highlighting the impact of geopolitical events and broader economic factors on its price.

OIL experienced a significant drop, falling below $95 per barrel, as geopolitical tensions eased with the potential for a ceasefire between the US and Iran. President Trump’s delay in threatened attacks and a proposed negotiation framework from Iran have reduced the risk premium embedded in oil prices. The agreement for Iran to potentially reopen the Strait of Hormuz, a critical oil transit route, alleviates concerns about supply disruptions that had previously contributed to price volatility. The market is responding positively to the possibility of de-escalation, suggesting that a sustained period of lower prices could materialize if negotiations progress and the Strait remains open.

Asset Summary – Tuesday, 7 April

US DOLLAR is facing uncertainty amid geopolitical tensions in the Middle East, specifically related to Iran, which could induce volatility. Threats of potential US action against Iranian infrastructure and the deadline imposed by President Trump are creating a risk-off environment that might impact the dollar’s value. Furthermore, high oil prices, fueled by these tensions, are raising concerns about inflation, adding another layer of complexity. Investors are closely monitoring the upcoming US CPI data for March to gauge inflationary pressures, while expectations remain that the Federal Reserve will hold steady on interest rates for the foreseeable future, which might limit potential upside for the currency.

BRITISH POUND is exhibiting stability near the $1.32 mark as investors are hesitant to make significant moves pending the outcome of the US-Iran situation. Heightened geopolitical tensions stemming from the US ultimatum regarding the Strait of Hormuz and Iran’s LNG tanker blockade are creating uncertainty. The potential for US military action against Iran is a significant risk factor. Simultaneously, rising energy prices, fueled by the blockade, are solidifying market expectations for the Bank of England to implement two interest rate increases this year, providing some underlying support for the currency.

EURO is facing a complex situation with potential support and downward pressure. The escalating conflict in the Middle East, particularly Iran’s actions regarding the Strait of Hormuz, is driving up energy prices and fueling expectations for the European Central Bank (ECB) to tighten monetary policy aggressively. The market is pricing in multiple interest rate hikes, possibly starting soon, in response to the energy crisis. This prospect of higher interest rates tends to strengthen the euro. However, the geopolitical instability caused by the conflict itself and the potential for devastating US strikes introduce uncertainty that could weigh on investor sentiment and offset some of the positive effects from anticipated rate hikes. Therefore, the euro’s stability will likely depend on how the Middle East situation unfolds and the ECB’s reaction.

JAPANESE YEN is facing downward pressure as it approaches levels not seen since July 2024, largely due to a strengthening US dollar and rising oil prices fueled by geopolitical tensions in the Middle East. The possibility of US military action against Iran is further exacerbating the situation. While Prime Minister Takaichi is pursuing diplomatic solutions, the yen’s weakness persists. Market expectations of a potential interest rate hike by the Bank of Japan this month, driven by increasing inflation, offer a glimmer of potential support for the currency, but its impact remains to be seen against the backdrop of global uncertainties.

CANADIAN DOLLAR is gaining value as geopolitical tensions ease between the US and Iran, lessening fears of a major energy supply disruption. The reduced pressure on the Bank of Canada to maintain aggressive monetary policy, despite a contracting manufacturing sector, has also contributed to the loonie’s stability. While stronger-than-expected US job growth typically favors the US dollar, the current de-escalation in international tensions is outweighing that effect, leading investors to move away from the safe-haven greenback and towards riskier assets like the Canadian dollar. However, the market remains cautious due to potential infrastructure-related deadlines set by President Trump, which could introduce renewed uncertainty.

AUSTRALIAN DOLLAR is facing downward pressure, trading near two-month lows as geopolitical tensions surrounding the Strait of Hormuz bolster demand for the US dollar as a safe haven asset. The looming deadline set by the US regarding the Strait of Hormuz is creating uncertainty and risk aversion, benefiting the US dollar at the expense of the Australian dollar. Adding to the currency’s woes, recent domestic data reveals a contraction in Australia’s private sector activity, further weakening its appeal. The combination of global uncertainty and weakening domestic economic indicators suggests a fragile outlook for the Australian dollar.

DOW JONES faces downward pressure due to heightened geopolitical tensions and their chilling effect on global markets. The anticipation of potential conflict escalation, particularly involving Iran, has caused investors to reduce their exposure to equities. Furthermore, weakness in the technology sector, a significant component of the Dow, is contributing to the negative outlook, as major tech stocks are experiencing pre-market declines. While Broadcom’s positive news provides a slight counterweight, the overall risk-averse sentiment is likely to weigh on the index.

FTSE 100 experienced minimal movement, reflecting market uncertainty driven by geopolitical tensions surrounding Iran. Rising oil prices provided a boost to energy companies listed on the index, while losses in pharmaceuticals, banking, precious metal mining, and travel sectors counteracted these gains. Overall, the index’s performance suggests a cautious market stance, influenced by international political risks.

DAX is facing significant volatility due to geopolitical tensions in the Middle East, specifically involving the US and Iran. The uncertainty surrounding potential military actions and failed ceasefire negotiations is weighing heavily on investor sentiment, leading to a risk-off environment. Industrials and consumer cyclical stocks are experiencing notable declines, suggesting concerns about the potential impact of the conflict on economic activity and supply chains. However, some sectors like chemicals and media are showing resilience. Individual stock performances reflect this uncertainty, with companies like Heidelberg Materials and Rheinmetall experiencing losses, while BASF and Fresenius Medical Care are seeing gains, indicating a flight to safety in certain sectors. Overall, the DAX’s performance is heavily influenced by the evolving geopolitical landscape and the associated risks.

NIKKEI’s performance is currently being influenced by both international geopolitical tensions and domestic political maneuvers. While technology and financial stocks are providing upward momentum, the looming deadline regarding Iran and the Strait of Hormuz introduces significant uncertainty. Prime Minister Takaichi’s planned talks with both Iranian and US leaders suggest an attempt to mediate, potentially mitigating the negative impact of escalating conflict, but the success of these efforts remains to be seen. The market’s reaction to these developments will likely depend on the perceived probability of a resolution and the potential economic consequences of further instability in the region.

GOLD is experiencing a tug-of-war between opposing forces. Geopolitical tensions stemming from the US-Iran conflict are creating uncertainty, influencing its price movements. The potential for military action and Iran’s threats of retaliation are contributing to market volatility. The strengthened US dollar and decreased expectations of Federal Reserve rate cuts are diminishing gold’s attractiveness. However, offsetting these negative factors is China’s significant gold purchase, which could provide a boost to investor confidence and support prices. Overall, its future appears highly dependent on the outcome of the US-Iran situation and the continued actions of major players like China.

OIL is experiencing price volatility and is trading near its 2022 peak, primarily driven by geopolitical tensions involving Iran and the United States. The potential for military action against Iranian infrastructure, coupled with the ongoing conflict disrupting global crude supply, is creating significant market uncertainty. Threats to the Strait of Hormuz, a critical oil transit route, alongside reported attacks on key oil infrastructure such as Kharg Island, are likely to further exacerbate supply concerns and could lead to upward price pressure.

Asset Summary – Monday, 6 April

US DOLLAR experienced a decline as market participants responded favorably to news suggesting a potential ceasefire in the Middle East, which eased concerns about geopolitical risks. This development, coupled with reports of increased shipping activity through a crucial waterway, alleviated pressure on oil prices and provided temporary support. Simultaneously, the market is anticipating upcoming economic data releases, such as the CPI report and FOMC minutes, to gain a clearer understanding of the economic outlook. The expectation that the Federal Reserve will maintain current interest rates throughout the year is also influencing investor sentiment.

BRITISH POUND faces downward pressure as geopolitical tensions surrounding Iran and rising oil prices create market uncertainty. The strength of the US dollar, bolstered by positive US employment data and diminishing expectations of Federal Reserve interest rate cuts, further weakens the pound. While reports of potential truce negotiations offer a glimmer of hope, persistently high crude prices stoke inflation fears, influencing investors to anticipate a tightening monetary policy stance from the Bank of England, with markets now pricing in rate hikes rather than cuts, despite the Governor’s cautionary remarks.

EURO is facing a complex environment, with its value currently stable but potentially vulnerable to shifts in geopolitical tensions and monetary policy expectations. The conflict involving Iran and the associated surge in oil prices are creating inflationary pressures that are influencing investor sentiment regarding central bank actions. While stronger US jobs data is reducing the likelihood of Federal Reserve rate cuts, the market is pricing in multiple rate hikes by the European Central Bank in the coming years, diverging significantly from previous expectations. Any de-escalation of the Iran conflict, particularly regarding the Strait of Hormuz, could ease inflationary concerns and impact the anticipated path of European interest rates, while further escalation could reinforce the current trends.

JAPANESE YEN faces downward pressure as geopolitical tensions in the Middle East, specifically the Iran conflict and rising energy prices, negatively impact its value against the dollar, nearing levels not seen since July 2024. While markets anticipate a potential Bank of Japan rate hike this month and further increases by year-end, alongside IMF recommendations for gradual rate increases to combat inflation, these factors are currently overshadowed by the external pressures. Traders should also be vigilant for possible intervention from Tokyo to support the currency, given recent strong warnings from Japanese officials.

CANADIAN DOLLAR is facing downward pressure as geopolitical tensions in the Middle East and rising crude prices fuel inflation concerns, strengthening the US dollar and causing the loonie to trade near its lowest levels in over a year. The Bank of Canada’s decision to maintain its current interest rate adds to this pressure, while market expectations of future rate hikes offer limited support against the backdrop of global uncertainty and a recent significant monthly decline.

AUSTRALIAN DOLLAR is facing mixed pressures. Geopolitical tensions in the Middle East, particularly surrounding the Strait of Hormuz, are creating uncertainty and potentially limiting gains, especially if the shipping route remains constrained. Any de-escalation, however, could provide some relief. Domestically, the prospect of further interest rate hikes by the Reserve Bank of Australia is offering support, with markets anticipating potential increases that could push the cash rate to levels not seen since 2008. The anticipation of these hikes, driven by persistent inflation and a tight labor market, is likely to bolster the currency’s value in the medium term, although the ultimate impact will depend on the RBA’s actual policy decisions and the evolution of global risk sentiment.

DOW JONES faces a mixed outlook amid geopolitical and economic uncertainties. Concerns regarding the conflict involving Iran and its potential impact on energy prices are driving risk aversion, potentially limiting gains. Upward pressure on inflation, exacerbated by both the war’s supply shocks and a robust jobs report increasing the likelihood of continued interest rate hikes, could further weigh on the index. While weakness in financial stocks, stemming from concerns in the private credit sector, presents a headwind, gains in tech companies offer some potential offset. The net effect suggests potential volatility and a lack of clear directional momentum.

FTSE 100 experienced upward momentum driven primarily by rising oil prices, which benefited major oil companies listed on the index. Gains were also observed in pharmaceutical and consumer-related stocks. Geopolitical factors, specifically developments concerning Iran and the Middle East, contributed to investor caution, although they did not outweigh the positive impact of rising oil. The banking sector experienced a slight decline, potentially reflecting broader economic uncertainty. The upcoming market closure for the Easter holiday suggests a pause in trading activity, allowing the market to digest the week’s events.

DAX experienced a decline of approximately 0.6% closing at 23,168, influenced by geopolitical tensions and sector-specific pressures. Heightened oil prices resulting from President Trump’s statements and the upcoming deadline regarding the Strait of Hormuz are injecting uncertainty. Losses were concentrated in technology, financials, and industrials, with notable declines in Deutsche Telekom due to ex-dividend trading, and further drops in Infineon, Heidelberg Materials, Siemens, Deutsche Bank, and Commerzbank. Despite the day’s losses, the index recorded a weekly gain of about 3.9%. Trading will be paused for the Easter holiday, which may affect market sentiment upon reopening.

NIKKEI is demonstrating positive movement driven by increasing investor confidence linked to potential de-escalation of Middle East tensions. The possibility of a ceasefire agreement between the US and Iran is particularly impactful, given Japan’s vulnerability to oil supply disruptions stemming from the region. Strong performance in key technology stocks such as Kioxia Holdings, Furukawa Electric, Lasertec, Advantest, and Disco Corp further contributed to the index’s upward trajectory.

GOLD is facing downward pressure as potential ceasefire negotiations in the Middle East reduce its safe-haven appeal. While tensions remain high with threats from both sides, the possibility of de-escalation is weighing on gold prices. Furthermore, high energy prices stemming from the conflict are contributing to inflation, bolstering expectations of interest rate hikes. These anticipated rate increases are further diminishing gold’s attractiveness. The metal is also experiencing selling pressure as investors liquidate gold holdings to cover losses elsewhere, impacting its performance as a safe-haven asset.

OIL is experiencing volatility influenced by geopolitical factors. Potential ceasefire negotiations in the Middle East are creating downward pressure on prices, as a truce could alleviate supply concerns. However, this is counteracted by tensions surrounding the Strait of Hormuz, with threats and closures potentially limiting supply and driving prices upward. OPEC+’s acknowledgement of potential long-term damage to energy infrastructure further complicates the supply outlook, while adjustments to output quotas and exemptions for certain countries add additional layers of complexity to the market. The net effect is uncertainty and price swings, making oil trading particularly sensitive to news and developments in these ongoing situations.

Asset Summary – Friday, 3 April

US DOLLAR is experiencing upward pressure as stronger than anticipated US jobs data bolsters the likelihood of the Federal Reserve maintaining elevated interest rates. The unexpectedly robust nonfarm payrolls and declining unemployment rate signal a resilient labor market despite the emergence of geopolitical tensions related to the Iran conflict. These tensions, along with rising energy prices, contribute to inflation concerns, further supporting a cautious market sentiment. However, trading volume may be limited in the short term due to the Good Friday holiday.

BRITISH POUND is facing downward pressure as geopolitical tensions in the Middle East escalate, triggering risk aversion among investors. The absence of a clear resolution to the conflict and threats of further action by the US are contributing to the pound’s decline. Adding to the uncertainty, the market’s expectations for interest rate hikes by the Bank of England are being scaled back. Despite earlier anticipation, investors now foresee only two rate increases in 2026, a significant shift that reflects concerns about inflationary pressures and the overall economic outlook, further weakening the currency’s appeal.

EURO’s value is under pressure as renewed geopolitical uncertainty stemming from the Middle East conflict fuels investor anxiety. President Trump’s address, lacking a concrete resolution timeline and hinting at escalated actions, has failed to reassure markets. This unease, coupled with rising inflation concerns, is prompting a reassessment of the European Central Bank’s future monetary policy. The shift in expectations towards more aggressive interest rate hikes in 2026, compared to pre-conflict forecasts, reflects a growing anticipation of tighter monetary conditions in response to the economic climate. This adjustment signals a potentially less dovish stance from the ECB, which could impact the euro’s valuation as markets react to these evolving expectations.

JAPANESE YEN is facing downward pressure as it approaches the 160-per-dollar level, primarily due to uncertainty surrounding the Bank of Japan’s (BOJ) upcoming policy decisions. The BOJ’s ambiguous signaling regarding a potential rate hike this month is causing market anxiety, especially given the governor’s historical tendency to act contrary to market expectations. The probability of a rate increase is priced in, but a hold could negatively impact markets. Furthermore, concerns about heightened speculation in currency and crude oil markets, coupled with geopolitical tensions involving the US and Iran, contribute to the Yen’s volatility. Despite these pressures, the Yen is still positioned to record a weekly gain, indicating some underlying resilience.

CANADIAN DOLLAR is facing downward pressure, currently trading near multi-month lows against the USD as geopolitical tensions in the Middle East and rising crude oil prices are driving inflation concerns and strengthening the US dollar. A significant monthly decline indicates recent weakness, and while the Bank of Canada is holding interest rates steady, market expectations point towards potential tightening later in the year. The impact of ongoing global conflicts remains a key factor influencing the currency’s future performance.

AUSTRALIAN DOLLAR is experiencing mixed signals that contribute to its current stability but suggest potential future volatility. On one hand, hopes for de-escalation in the Middle East, particularly concerning the Strait of Hormuz, provide a degree of support. However, the ambiguity surrounding the conflict’s resolution and potential toll impositions on shipping routes introduce uncertainty. Domestically, rising energy costs in Australia are expected to fuel inflation, potentially leading to revised economic forecasts and increased interest rate hikes, all of which could impact the currency’s strength as stagflation risks intensify.

DOW JONES futures experienced a slight dip, mirroring declines in other major US stock indexes, as markets were closed for the Easter holiday. Despite this short-term pressure, the index demonstrated considerable upward movement over the past week, gaining nearly 3%. The latest jobs report, indicating robust job creation alongside a lower unemployment rate, has solidified expectations that the Federal Reserve will maintain current interest rates, which could limit gains. Geopolitical tensions in the Middle East, particularly involving the US and Iran, also introduce a degree of uncertainty that could weigh on investor sentiment, potentially tempering future growth.

FTSE 100 experienced a positive trading day, driven by rising oil prices that significantly boosted the performance of major oil companies. Gains were also seen in pharmaceutical and consumer-related stocks, indicating broad market optimism. However, concerns regarding the Middle East situation and its potential impact on global stability kept some investors on edge. The banking sector experienced a slight decline, possibly due to prevailing risk aversion towards financial institutions. The upcoming market closure for the Easter holiday will pause trading activity, potentially leading to repositioning when markets reopen.

DAX experienced a decline, influenced by geopolitical tensions in the Middle East and individual stock performance. Concerns surrounding potential disruptions in the Strait of Hormuz, coupled with President Trump’s statements on Iran, created uncertainty. Specific sectors such as technology, financials, and industrials faced significant selling pressure. Deutsche Telekom’s ex-dividend trading impacted its share price, contributing to the overall downward trend. Despite these losses, the index recorded a substantial weekly gain, however, the upcoming holiday closure could lead to reduced trading volume and potentially amplified market reactions upon reopening.

NIKKEI experienced a boost driven by positive developments in the Middle East and growing enthusiasm surrounding artificial intelligence. Efforts to stabilize oil shipments through the Strait of Hormuz, following disruptions caused by the conflict in Iran, helped ease concerns about energy prices in Japan, a major importer. This, in turn, supported the overall equity market. Furthermore, anticipation of strong corporate earnings, fueled by expectations of AI-driven growth, added to the positive sentiment. Significant gains in AI-related stocks, particularly following Microsoft’s substantial investment in Japan, indicate strong investor confidence in the sector’s potential impact on the Japanese economy and corporate performance.

GOLD experienced a significant decline, primarily driven by a strengthening US dollar and rising oil prices in the wake of escalating tensions between the US and Iran. President Trump’s hawkish rhetoric regarding the ongoing conflict fueled concerns about inflation and anticipated interest rate hikes, further bolstering the dollar’s appeal as a safe-haven asset. This, in turn, negatively impacted gold, a dollar-denominated commodity, resulting in a considerable price drop. The unresolved conflict and continued uncertainty surrounding the Strait of Hormuz contribute to the bearish outlook for gold.

OIL is experiencing significant upward pressure due to escalating geopolitical tensions in the Persian Gulf. Threats of increased military action by the US against Iran, coupled with retaliatory rhetoric from Tehran, are fueling concerns about potential supply disruptions. While there were brief periods of optimism regarding normalized supplies due to reported coordination between Oman and Iran, these hopes were quickly dashed. The surge in both WTI and Brent benchmarks reflects the market’s apprehension, despite efforts from the UK to secure shipping routes and potential OPEC+ output increases, as these measures are unlikely to provide immediate relief to supply constraints. The overall effect is a heightened risk premium and a strong bullish sentiment for oil prices.

Asset Summary – Thursday, 2 April

US DOLLAR is demonstrating resilience amid geopolitical tensions, particularly concerning Iran. Heightened uncertainty stemming from President Trump’s statements regarding potential future actions against Iran, despite achieving strategic objectives, is fueling safe-haven demand for the dollar. This demand is further amplified by the conflict’s impact on oil prices, triggering inflation concerns and diminishing expectations of Federal Reserve rate cuts, bolstering the currency’s value.

BRITISH POUND is experiencing downward pressure as geopolitical tensions in the Middle East persist, with no immediate resolution in sight. This uncertainty is compounded by lingering inflationary concerns, leading investors to re-evaluate their expectations for the Bank of England’s monetary policy. While the market anticipates some interest rate increases, the number of expected hikes has fluctuated, reflecting ongoing doubt and a potential disconnect between market forecasts and the central bank’s guidance. This combination of factors suggests a volatile period for the currency, with its value likely to remain sensitive to both geopolitical developments and evolving economic data.

EURO is facing downward pressure as renewed investor apprehension stems from the lack of clarity surrounding the Middle East situation and potential for escalation. Trump’s ambiguous statements regarding the conflict have fueled uncertainty, overriding any initial optimism. This risk-off sentiment is compounded by rising inflation concerns, prompting a reassessment of the European Central Bank’s future monetary policy. The market is now pricing in a more hawkish stance from the ECB, with expectations shifting towards multiple interest rate hikes in 2026, a significant departure from previous forecasts of no rate increases, and thus decreasing the Euro’s appeal.

JAPANESE YEN is facing downward pressure as it weakens against the US dollar. The dollar’s strength is fueled by receding expectations of Federal Reserve rate cuts, influenced by potential inflationary pressures from rising oil prices linked to Middle East tensions. Japan, heavily reliant on Middle Eastern oil imports, is particularly vulnerable to these price fluctuations. While government subsidies have provided some relief, the underlying economic impact remains a concern. The Bank of Japan’s cautious approach, indicated by new board member Toichiro Asada, suggests a measured response to these challenges, which could limit the yen’s potential for appreciation, even with market expectations of a possible rate hike later in April.

CANADIAN DOLLAR experienced a recovery, strengthening to 1.39 per US dollar, primarily driven by a weakening US dollar and optimism surrounding a potential ceasefire in the Middle East. This positive momentum offset concerns stemming from a stagnant Canadian manufacturing sector, which showed no growth in March due to rising prices and trade-related uncertainties. The currency’s trajectory remains vulnerable to geopolitical developments and the Federal Reserve’s interest rate policy, suggesting that its value could fluctuate based on these external factors.

AUSTRALIAN DOLLAR experienced downward pressure, driven by a strengthening US dollar and rising oil prices influenced by geopolitical uncertainty surrounding the conflict involving Iran. Comments from President Trump regarding potential future actions against Iran shifted market sentiment, weighing on global equities and benefiting the US dollar, in turn weakening the Australian currency. Offsetting some of the negative impact was positive domestic trade data indicating a significant increase in Australia’s trade surplus due to higher exports and lower imports. However, renewed concerns about tariffs on goods containing imported steel and aluminum also added to the headwinds facing the Australian dollar.

DOW JONES is facing downward pressure due to escalating tensions between the US and Iran. President Trump’s aggressive stance has heightened fears of a prolonged conflict, potentially disrupting energy exports from the Persian Gulf. This situation raises concerns about a global energy shock and increased inflationary risks, leading to a rebound in Treasury yields and negatively impacting equities. Futures contracts for the Dow are already indicating a decline, suggesting that the index will likely open lower. Furthermore, the underperformance of major tech stocks like Nvidia, Meta, and Tesla is contributing to the bearish outlook.

FTSE 100 experienced a downturn as geopolitical tensions in the Middle East intensified, casting a shadow over market sentiment. Losses were primarily driven by declines in mining stocks and banking shares, influenced by both commodity market volatility and concerns surrounding potential financial repercussions. Gains in energy stocks, fueled by rising oil prices, provided some support but were insufficient to offset broader market pressures. Individual stock movements, such as the rise in B&M following a rating upgrade, indicated specific factors at play alongside the overall market trends.

DAX experienced a significant downturn, driven by waning optimism regarding a swift resolution to the Middle East conflict and concerns stemming from heightened oil prices following Donald Trump’s address. His statements, lacking a clear timeline for ending the conflict and addressing the Strait of Hormuz, fueled fears of escalating inflation and stifled economic expansion. This uncertainty triggered widespread selling, particularly impacting technology, financials, and industrial sectors, with key companies like Infineon, Siemens Energy, and Deutsche Bank experiencing notable declines. Despite the day’s losses, the DAX remained on track to close the week with an overall gain.

NIKKEI experienced a significant downturn, reversing earlier gains due to diminished optimism regarding a swift resolution to the Middle East conflict. Investor sentiment was negatively impacted by cautious statements from the US regarding the timeline for ending the war, coupled with warnings of potential further action. This uncertainty surrounding geopolitical tensions, particularly concerning the Strait of Hormuz, fueled volatility in energy markets and contributed to a broad decline across most sectors, with notable losses in key index components like SoftBank, Tokyo Electron, and Mitsubishi UFJ Financial. The market’s retreat suggests a sensitivity to geopolitical risk and the influence of global events on investor confidence.

GOLD experienced a significant price decrease due to a strengthening US dollar. Political uncertainty and the potential for continued military action in the Middle East have boosted the dollar’s appeal as a safe haven, thereby negatively impacting gold, which is priced in dollars. Rising oil prices and the shifting outlook on US monetary policy, now anticipating no rate cuts in 2026, are also contributing to downward pressure on gold prices as inflation concerns increase and expectations of tighter monetary policy rise.

OIL is likely to experience increased price volatility and upward pressure. The lack of a clear resolution to the conflict in the Middle East, coupled with the potential for escalating military operations and threats to close the Strait of Hormuz, create significant supply concerns. These geopolitical risks outweigh the impact of rising US crude inventories, suggesting a bullish outlook for oil prices in the near term.

Asset Summary – Wednesday, 1 April

US DOLLAR experienced a dip to 99.5, a one-week low, driven by optimism surrounding a potential quick resolution to the Middle East conflict. However, ongoing caution prevails due to continued troop deployments and the closed Strait of Hormuz. The market is anticipating President Trump’s address on the Iran situation. Despite the recent decline, the dollar saw a 2.3% gain last month, benefiting from its safe-haven status amid war anxieties and decreased expectations of Federal Reserve rate cuts due to rising oil prices and inflation concerns. Fed Chair Powell’s comments regarding stable long-term inflation expectations offered some reassurance to the market.

BRITISH POUND has experienced a slight rebound, rising to $1.33 after hitting a four-month low. This uptick is fueled by increased hopes that the Iran conflict may be resolved shortly. However, the currency remains vulnerable as it recently suffered its worst monthly decline since July 2025, largely due to escalating tensions in the Middle East and their impact on oil prices stemming from continued uncertainty around the Strait of Hormuz. Critically, market expectations for the Bank of England’s monetary policy have been revised downwards, with fewer rate hikes now anticipated in 2026 compared to previous projections, signaling dampened confidence in the pound’s near-term performance.

EURO is experiencing increased volatility, largely influenced by geopolitical events and shifting expectations for monetary policy. Initial strengthening occurred in early April due to speculation surrounding potential US withdrawal from the Iran nuclear deal. However, unresolved tensions in the Middle East, specifically the Strait of Hormuz crisis, continue to pose a risk by disrupting oil supplies and fueling inflation concerns. These inflationary pressures are causing a reassessment of the European Central Bank’s future actions, leading investors to scale back expectations for interest rate hikes in 2026, suggesting a potentially less aggressive monetary policy stance than previously anticipated. This environment of uncertainty could lead to fluctuations in the euro’s value as traders react to evolving geopolitical and economic developments.

JAPANESE YEN is exhibiting signs of strengthening, primarily driven by easing geopolitical tensions in the Middle East, potentially diminishing its safe-haven appeal. Concurrently, positive domestic economic signals from Japan, such as a strong Bank of Japan sentiment index and a revised upward manufacturing PMI, indicate a resilient economy that could support the yen’s value independent of global risk sentiment. However, traders should note that while the manufacturing PMI improved, it still lags behind the previous month’s high, suggesting a need for continued monitoring of economic data.

CANADIAN DOLLAR faces downward pressure, recently hitting lows not seen since December, largely due to a strengthening US dollar fueled by its safe-haven appeal amidst geopolitical tensions. Despite positive Canadian economic growth in recent months, the loonie has been unable to capitalize, overshadowed by the US dollar’s dominance and concerns over prolonged international conflicts. The potential for a larger US defense budget, coupled with the market pricing out near-term US interest rate cuts, further weakens the Canadian dollar’s position. Diverging fiscal outlooks and the possibility of supply shocks in the Persian Gulf leave the Canadian dollar exposed to continued vulnerability.

AUSTRALIAN DOLLAR is experiencing upward pressure as geopolitical tensions in the Middle East appear to be easing, improving global risk appetite. However, lingering uncertainty surrounding potential further US military action and persistent concerns about oil supply disruptions are providing a counterweight. Elevated energy costs could lead to sustained inflationary pressures, potentially influencing the Reserve Bank of Australia’s (RBA) monetary policy decisions. The market anticipates a possible further interest rate hike by the RBA, although peak rate expectations have softened slightly, indicating a mixed outlook for the currency.

DOW JONES is poised to benefit from improved investor sentiment fueled by potential de-escalation of tensions between the US and Iran, which has eased concerns about rising energy prices and stagflation. Positive retail sales and employment data indicate the US economy remains resilient, which could further support gains. Stronger risk appetite, exemplified by the AI sector’s positive outlook with major investments, should also provide a tailwind. However, a significant decline in Nike’s stock price may offset some of the positive momentum.

FTSE 100 is experiencing upward momentum, driven by hopes of reduced conflict in the Middle East. This optimism has spurred gains in financial and travel sectors. The potential for a sustained period of gains exists, although concerns about disruptions to oil supply through the Strait of Hormuz persist, which could act as a limiting factor. While key players in the oil industry are holding back further gains, positive corporate news from companies like Babcock and Berkeley are adding to overall market confidence, even as Berkeley adopts a more conservative stance on future investments.

DAX experienced a significant surge, climbing over 2.5% to approach 23,300 following a period of decline. This positive movement appears to be fueled by renewed market optimism stemming from signals suggesting a potential de-escalation of tensions in the Middle East. The rally was broad-based, with particular strength seen in sectors like energy-sensitive industrials, banks, and technology. Strong performances from companies like Siemens Energy, Siemens, Airbus, and major banking institutions contributed to the overall positive sentiment and upward pressure on the index’s value.

NIKKEI is experiencing a significant rebound, driven by optimism surrounding potential de-escalation of tensions in the Middle East. Statements suggesting a possible near-term end to military actions have boosted investor confidence. Furthermore, positive business sentiment among large Japanese manufacturers, as indicated by the Bank of Japan’s Tankan survey, suggests resilience to economic uncertainty stemming from the conflict. Gains were broad-based, with particular strength in technology sectors like chip and AI-related shares, indicating strong market participation in the rally. However, the situation remains fluid due to conflicting statements regarding ceasefire terms, which could introduce volatility.

GOLD is currently experiencing a complex interplay of factors influencing its price. Decreasing tensions in the Middle East suggest a potential weakening of its safe-haven appeal, while a strong US dollar and high Treasury yields create headwinds for the non-yielding asset. The market is closely watching US economic data and Federal Reserve signals for clues about future interest rate policy, which could significantly impact gold’s valuation. Recent sharp declines indicate a period of vulnerability, making it crucial for traders to assess upcoming economic indicators and geopolitical developments to determine its future trajectory.

OIL is facing downward pressure as WTI crude futures have fallen significantly. This decline is largely attributed to optimism surrounding potential de-escalation of tensions in the Middle East, sparked by suggestions of a possible US withdrawal from Iran and a potential deal with Tehran. However, underlying caution persists due to continued US troop deployments and Iran’s conditional willingness to negotiate peace. The market is keenly awaiting President Trump’s address on the Iran conflict, which could significantly impact oil prices. Furthermore, a drone attack on Kuwait’s airport fuel tanks and a substantial increase in US crude inventories are contributing to the bearish sentiment.

Asset Summary – Tuesday, 31 March

US DOLLAR is experiencing upward pressure, driven by geopolitical instability in the Middle East and shifting expectations regarding US monetary policy. The ongoing conflict has increased demand for the dollar as a safe-haven asset, while disruptions to global energy supplies have further supported its value due to the US position as a leading oil producer. Simultaneously, fading expectations for Federal Reserve interest rate cuts are contributing to the dollar’s strength, as traders react to persistent inflation concerns despite signals from the Federal Reserve suggesting a more cautious approach. The confluence of these factors points toward continued appreciation for the US dollar in the near term.

BRITISH POUND experienced a decline against the dollar in March, influenced by geopolitical uncertainties and shifting expectations regarding Bank of England monetary policy. The currency’s weakness stemmed from concerns about the economic consequences of escalating Middle East tensions, particularly in relation to Iran. Market sentiment swung from anticipating rate cuts to pricing in potential rate hikes in 2026, with a possibility of a move as early as April. However, a cautious stance from a Bank of England policymaker, who emphasized a high threshold for raising rates given the uncertain economic impact of the conflict, added further complexity to the outlook for the currency.

EURO experienced a decline in value against the dollar during March, influenced by geopolitical instability and its potential economic consequences. Uncertainty surrounding the Middle East conflict, particularly regarding Iran and the Strait of Hormuz, contributed to market volatility. Rising oil prices and subsequent inflation across Europe led investors to anticipate a more hawkish stance from the European Central Bank, with expectations shifting from potential rate cuts to multiple rate hikes in the coming years. While the ECB acknowledged inflationary pressures, a cautious approach to immediate policy adjustments added further complexity to the Euro’s near-term outlook.

JAPANESE YEN is currently experiencing a period of stabilization near the 159.6 per dollar mark, buoyed by strong rhetoric from Japanese officials hinting at potential intervention if the currency weakens further, particularly if it breaches the 160 level. This verbal intervention, reminiscent of actions taken in July 2024, aims to counteract downward pressure stemming from rising oil prices, a significant concern for Japan due to its dependence on oil imports from the Middle East. However, despite these efforts, the yen remains vulnerable, having depreciated over 2% this month, as the US dollar benefits from its safe-haven status amidst global uncertainties.

CANADIAN DOLLAR faces downward pressure, recently hitting its lowest point since December, trading near 1.395 per US dollar. This weakness stems primarily from the US dollar’s broad strength as a safe haven amid geopolitical tensions, overshadowing positive domestic economic growth in Canada. Despite a third consecutive month of expansion and a flash estimate indicating 0.2% growth in February, the Canadian dollar hasn’t benefited due to the dominance of the US dollar and concerns over potential supply shocks in the Persian Gulf. The diverging fiscal outlooks between the US and Canada, coupled with the possibility of a larger US defense budget, further weakens the loonie, making it susceptible to ongoing instability.

AUSTRALIAN DOLLAR is currently facing downward pressure, demonstrated by its decline in March, its worst monthly performance since December 2024. While initially supported by higher interest rates, growing global growth concerns and uncertainty around the Reserve Bank of Australia’s future policy path are weakening the currency. The RBA’s concerns regarding the impact of the Middle East war on both inflation and economic activity contribute to this uncertainty. Traders are anticipating upcoming economic data releases in April, including inflation figures, labor market data, and consumer spending indicators, as these will likely influence the RBA’s decision on further rate hikes. The market is pricing in a significant probability of another rate increase in May, but this expectation could shift based on the forthcoming data.

DOW JONES is poised for a potential rebound, driven by easing benchmark credit costs and a pullback in Treasury yields, offering support to various sectors despite ongoing energy price increases. Positive sentiment regarding a potential US-Iran deal, even amidst market skepticism, adds to the upside. A recovery in chip stocks, particularly Nvidia, Meta, and Microsoft, further bolsters the index, complemented by Eli Lilly’s acquisition of Centessa, indicating a potentially positive trading session.

FTSE 100 experienced upward pressure from positive sentiment surrounding reduced geopolitical risk and strong performance from mining stocks. Potential deals involving Unilever also contributed to gains. The banking sector is under scrutiny due to potential car loan redress costs, but major banks demonstrated resilience with mixed performance. Declines in energy stock values due to softening oil prices partially offset the gains. Revised data confirming UK economic growth and unexpectedly positive house price data suggest underlying economic strength that could support the index. However, the index remains significantly down for the month, indicating existing negative pressures are still in play.

DAX experienced a rebound, reflecting positive sentiment fueled by potential shifts in US foreign policy regarding Iran. The prospect of reduced military engagement eased market anxieties, benefiting sectors like retail, banking, and technology. However, the index remains vulnerable, facing its most significant monthly decline since the onset of the pandemic. The meeting of EU energy ministers to address oil and gas market volatility will likely influence trading, while individual stock performances such as Zalando’s gains and BASF’s losses highlight sector-specific dynamics that could shape overall DAX movement.

NIKKEI is under considerable pressure, evidenced by a significant drop in both the Nikkei 225 and Topix indexes. Ongoing geopolitical instability in the Middle East, particularly concerning the Iran war and its impact on energy prices, is creating substantial headwinds. This has triggered investor unease, resulting in widespread selling across nearly all sectors, particularly technology, financials, consumer, and defense. The substantial losses recorded in March highlight a period of severe market weakness not seen since the 2008 financial crisis, indicating continued vulnerability for the index. Fluctuations in US policy regarding the conflict also contribute to market uncertainty.

GOLD faced downward pressure recently, leading to a significant monthly decline, primarily driven by inflation concerns stemming from rising oil prices. This environment encouraged a more aggressive approach to interest rate hikes, diminishing gold’s appeal. While geopolitical tensions in the Middle East, specifically Iran’s actions affecting key shipping lanes, have added uncertainty, reassurance from the Federal Reserve regarding stable long-term US inflation expectations might be tempering some of the safe-haven demand for gold. The market is closely watching the economic repercussions of the conflict and the Federal Reserve’s subsequent policy decisions.

OIL is experiencing upward price pressure due to escalating geopolitical risks in the Gulf region. Attacks on oil tankers and potential targeting of energy infrastructure by Iran are creating supply concerns. Market uncertainty is heightened by conflicting signals from the US regarding its military strategy in the region, specifically related to Iranian energy assets and naval capabilities. Military actions and heightened tensions are driving significant price increases.

Asset Summary – Monday, 30 March

US DOLLAR is experiencing upward pressure, primarily driven by its safe-haven status amidst escalating geopolitical tensions in the Middle East. Concerns surrounding potential US military action in Iran and the involvement of Iran-backed groups are fueling demand for the dollar. Furthermore, rising oil prices, triggered by the conflict, are contributing to speculation of a more hawkish stance from the Federal Reserve, potentially leading to interest rate hikes and further bolstering the dollar’s value. Upcoming US jobs data releases will be closely monitored for further clues about the health of the US economy and their potential impact on Fed policy.

BRITISH POUND is facing downward pressure as risk aversion grips the market due to Middle East tensions, overshadowing positive news regarding Iran negotiations. This geopolitical uncertainty is compounded by a significant shift in expectations for Bank of England policy. The market now anticipates multiple rate hikes in 2026, a reversal from previous expectations of rate cuts. However, a cautious stance from a BoE policymaker advocating for steady borrowing costs until the economic implications of the Iran conflict are better understood, further contributes to the uncertainty surrounding the currency’s near-term prospects.

EURO is facing downward pressure, as indicated by its recent decline against the dollar and potential further weakening. Heightened risk aversion stemming from geopolitical instability in the Middle East and concerning economic data are significant factors. Specifically, rising inflation in Germany and declining business sentiment across the Eurozone, coupled with spiking inflation expectations, contribute to the currency’s vulnerability. The market’s revised expectations of ECB policy, now pricing in multiple rate hikes in 2026 instead of potential rate cuts, reflects these concerns and adds to the uncertain outlook for the Euro.

JAPANESE YEN faces a complex situation, experiencing both downward and upward pressures. Its value declined recently due to rising oil prices and geopolitical tensions in the Middle East, particularly the ongoing conflict involving Iran, which increased import costs and threatened Japan’s economic recovery. This weakness prompted verbal intervention from Japanese officials, who expressed concern about speculative activity and hinted at potential decisive action to stabilize the currency. These warnings and the possibility of intervention provided some support, reversing earlier losses as the yen breached a key level that previously triggered intervention, suggesting that the currency’s future performance hinges on both global events and the resolve of Japanese authorities to defend its value.

CANADIAN DOLLAR is facing downward pressure, recently hitting a two-month low against the US dollar. Several factors contribute to this weakness. Geopolitical tensions and expectations that the Federal Reserve might maintain or even increase interest rates are strengthening the US dollar, which in turn weakens the Canadian dollar. Despite rising oil prices, typically a support for the Canadian dollar, the currency is struggling to benefit due to the overall strength of the US dollar and market concerns about persistent global instability. The increasing attractiveness of US Treasury yields and the US dollar’s position as a safe haven currency further weigh on the loonie’s value.

AUSTRALIAN DOLLAR is facing downward pressure as it has weakened significantly, hitting multi-month lows amid rising energy prices and geopolitical tensions that are bolstering the US dollar’s safe-haven appeal. The currency’s recent substantial weekly decline and projected monthly decrease reflect growing investor concerns. The situation is compounded by Australia’s response to increasing oil prices, with the government implementing temporary fuel tax cuts. Market participants are keenly awaiting the release of the RBA’s meeting minutes, hoping for insights into the central bank’s future monetary policy decisions as it navigates the challenges of persistent inflation and a weakening economic growth outlook.

DOW JONES is positioned to gain, driven by positive momentum in futures contracts and a slight easing of concerns regarding rising bond yields. While energy price volatility presents a risk, the market appears to be factoring in potential growth impacts alongside inflationary pressures, which could benefit equities. Gains in the technology and banking sectors are also expected to contribute to a positive trading day for the index.

FTSE 100 demonstrated mixed performance, with gains in the mining and energy sectors providing some upward momentum. However, these gains were partially offset by declines in banking, travel, and leisure stocks. Geopolitical uncertainty surrounding the Iran conflict appears to have contributed to a cautious trading environment. The performance of major constituents like BP, Shell, Rio Tinto, and Glencore influenced the index positively, while weakness in HSBC, Lloyds, Barclays, NatWest, EasyJet, and InterContinental Hotels weighed it down. News regarding GSK’s hepatitis B treatment had a negligible effect on the index’s overall movement.

DAX faces a mixed outlook, exhibiting resilience around the 22,370 level despite escalating geopolitical tensions in the Middle East and their potential economic ramifications. The index’s performance hinges on investor sentiment regarding the US-Iran dynamic and the involvement of groups like Yemen’s Houthi rebels, which add to uncertainty. German inflation data, particularly concerning energy prices, will be a key factor influencing market direction, with preliminary state figures already pointing towards upward pressure. Sector performance is varied, as gains in companies such as RWE and Rheinmetall are contrasted by weakness in Zalando, Siemens Energy, banks, and auto stocks, creating a complex and potentially volatile trading environment.

NIKKEI is facing significant downward pressure as a confluence of factors roils the Japanese market. Geopolitical instability in the Middle East, particularly the ongoing conflict involving Iran and the involvement of Houthi militants, is driving up oil prices and creating an energy shock for Japan. This situation is exacerbated by a weakening yen and increasing Japanese government bond yields, raising the possibility of an imminent interest rate hike by the Bank of Japan. Furthermore, the ex-dividend date for numerous companies likely contributed to selling pressure. Consequently, tech stocks are particularly vulnerable, pulling the overall index lower. This negative outlook is causing the Nikkei to reach new year-to-date lows.

GOLD is experiencing volatility as geopolitical tensions in the Middle East escalate, driving fluctuations in its price. The involvement of additional actors in the conflict and the potential for disruptions to key energy infrastructure are contributing to safe-haven demand, pushing prices upward. However, gold faces downward pressure from concerns about rising inflation fueled by oil price increases and anticipated interest rate hikes by major central banks. Furthermore, reduced central bank buying, as economies prioritize liquidity in response to the conflict, is adding to the negative sentiment surrounding gold’s value.

OIL is experiencing significant price volatility driven by geopolitical tensions in the Middle East. The potential for disrupted supply through the Strait of Hormuz, a critical chokepoint for global oil flows, is a major factor pushing prices upward. Military actions and threats of further strikes are exacerbating these supply concerns, resulting in a substantial rally in recent weeks. However, signals of possible de-escalation could temper price increases, highlighting the sensitivity of the market to news flow from the region. The ongoing conflict’s impact on infrastructure and regional stability suggests continued uncertainty and potential for further price swings.