Forex News

Producer prices in Romania jumped 4.03% year-on-year in February 2025, rebounding sharply from an upwardly revised 0.34% drop in the previous month, marking the first increase in producer prices in six months. The latest figure also represented the fastest growth since May 2023, boosted by higher prices in water supply, sewerage, waste management, and remediation activities (9.99%), electricity, gas, steam, and air-conditioning supply (8.46%), and manufacturing (2.37%). Meanwhile, mining and quarrying activities were almost unchanged (-0.01%). On a monthly basis, producer prices increased by 3.56%.

Japan’s 10-year government bond yield dropped below 1.5% on Wednesday, hitting a four-week low as concerns over upcoming US tariffs fueled demand for safe-haven assets. President Donald Trump is set to impose reciprocal tariffs on countries that levy duties on US goods, along with additional levies on car imports—posing risks to Japan’s key export sector. Meanwhile, Bank of Japan Governor Kazuo Ueda warned that the new US tariffs could significantly impact global trade and economic growth. Earlier data showed that Japanese business sentiment weakened in the first quarter amid mounting concerns over the effects of US trade policies on the country’s export-driven economy. While the BOJ is expected to raise interest rates further this year, global trade uncertainties and domestic economic challenges continue to cloud the outlook.

European equity markets were poised to open lower on Wednesday as investors cautiously awaited US President Donald Trump’s latest round of tariffs. Reports suggest Trump is considering a universal 20% tariff on most imports, though a country-specific reciprocal approach remains the likely outcome. Meanwhile, no major economic or earnings releases are scheduled in Europe for the day. In premarket trade, Euro Stoxx 50 and Stoxx 600 futures were down about 0.2%.

Bitcoin and Ether are experiencing declines. Ether has slipped 2.54%.

The yield on the US 10-year Treasury note steadied around 4.2% on Wednesday after a three-day decline, as investors cautiously awaited President Donald Trump’s latest tariffs announcement. The White House confirmed that reciprocal tariffs on nations imposing duties on US goods would take effect immediately. However, Treasury Secretary Scott Bessent stated that the tariffs would serve as a “cap,” allowing countries to take steps to reduce them. Meanwhile, data on Tuesday showed US factory activity contracted in March for the first time this year, with prices rising for a second straight month, reflecting the impact of tariffs. Job openings declined in February, but layoffs remained low, signaling a gradually cooling labor market. Investors now turn to the ADP employment report on Wednesday and nonfarm payrolls on Friday for further insights into Federal Reserve policy.

Top currency gainers are New Zealand Dollar (0.43%), South Korean Won (0.36%), Australian Dollar (0.27%) and Dollar Index (0.02%). Biggest losers are Japanese Yen (-0.20%), British Pound (-0.08%) and Euro (-0.04%).

New Zealand's benchmark S&P/NZX 50 index closed nearly flat at 12,320 on Wednesday, as caution prevailed ahead of additional US tariff rollouts later today. While New Zealand has minimal direct trade with the US, its economy remains highly sensitive to global trade fluctuations due to its heavy reliance on exports. On the data front, New Zealand's building permits rose 0.7% in February, slowing from a 2.6% increase in January. Across the index, key stocks such as Fisher & Paykel (+1.7%), Meridian Energy (+2.1%), and Infratil (+1.1%) posted gains, nearly offset by losses in Contact Energy (-2.1%), Port of Tauranga (-1.1%), and Spark NZ (-1%).

The HSBC India Manufacturing PMI was adjusted upward to 58.1 in March 2025, surpassing the flash estimate of 57.6. This figure also exceeded February's reading of 56.3, representing the highest level since July 2024. Both new orders and output rose the most in eight months, and buying levels notched their highest level in seven months. Employment also rose solidly while outstanding business rose at a marginal pace that was slower than in February. However, foreign sales rose the least in 3 months, despite its growth rate staying robust. Lead times shortened for the 13th month, albeit to the second-least degree over this period. Regarding prices, input cost inflation reached a 3-month top despite being below its average on higher prices for copper, electronic items, leather, LPG, and rubber. That said, prices charged rose the least in a year. Finally, sentiment remained fairly optimistic, supported by demand conditions, better customer relations, and projects pending approval.

China has launched its first-ever green sovereign bond offering, aiming to raise up to CNY 6 billion. The bonds, with 3-year and 5-year maturities, are set at yields of 2.3% and 2.35%, respectively, and could be priced soon. The bonds will be listed in London, reflecting China’s effort to strengthen financial ties with the UK and access Europe's large sustainable debt market. The initiative follows pledges made during a January visit by the UK Chancellor to Beijing, focusing on enhancing financial cooperation. This move also aligns with China’s broader strategy to boost overseas bond offerings, including recent sales in Saudi Arabia and Paris. China is working toward decarbonization and has committed to peaking its greenhouse gas emissions before 2030.

Australian Prime Minister Anthony Albanese said that his country will "stand up for national interests" in response to President Trump's recent plans to impose retaliatory tariffs on all U.S. trade partners. Albanese emphasized that Canberra would not compromise on its regulations, which may be targeted by Washington. Notably, Australia maintains a trade surplus with the U.S. and benefits from a free trade agreement that allows U.S. exports to enter duty-free. Albanese reiterated that his government would not retaliate with reciprocal tariffs, pointing out that the U.S. is not a major trading partner for Australia, with less than 5% of Australian goods exports going to the U.S. He also highlighted that efforts to diversify trade relations with Asian markets would support local businesses.

Malaysian palm oil futures soared around 2.5% to MYR 4,500 per tonne, extending gains for the fourth consecutive session as trading resumed after the Eid-ul-Fitr holiday. Prices approached their highest level in two weeks, driven by cargo surveyors' reports indicating a rise of 0.4% to 3.92% in Malaysian palm oil shipments for March. In the US, an oil and biofuel coalition reportedly met with the Environmental Protection Agency to advocate for higher federal mandates for biomass diesel blending. Turning to key buyer China, manufacturing activity showed resilience in March despite tariff challenges. Meanwhile, the Malaysian Palm Oil Council (MPOC) expects prices to stabilize in the near term, driven by a recovery in output and demand from markets like India. However, caution over a seasonal production recovery from March could limit further gains. This recovery is expected to gradually raise inventory, though the MPOC does not anticipate significant supply pressures.

The New Zealand dollar rose to around $0.572 on Wednesday, marking a gain for the second consecutive session, despite the impending announcement of US reciprocal tariffs later today. While New Zealand has minimal direct trade with the US, its economy remains highly sensitive to global trade fluctuations due to its heavy reliance on exports. Domestically, expectations for further easing from the Reserve Bank of New Zealand persist, with markets forecasting at least two rate cuts by the end of the year. This comes after the central bank cut its key rate last February, and flagged further reductions in borrowing costs amid moderating inflation and as they sought to revive a struggling economy. Meanwhile, positive sentiment from China's recent strong PMI data has supported the antipodean currency, given China's status as New Zealand's primary trading partner.

The Japanese yen held steady at around 149.8 per dollar on Wednesday, remaining sideways for the week as investors prepared for US President Donald Trump’s latest round of tariffs. Trump is set to impose reciprocal tariffs on countries that impose duties on US goods, as well as levies on car imports, which could impact Japan’s key export industry. Meanwhile, Bank of Japan Governor Kazuo Ueda warned that the new US tariffs could significantly affect global trade and economic growth. Data earlier this week showed that business sentiment in Japan weakened during the first quarter, with growing concerns over the potential impact of US tariffs on its export-driven economy. Although the BOJ is expected to raise interest rates later this year, concerns about global trade and domestic economic uncertainty continue to cloud the outlook.

The Australian dollar strengthened to around $0.63 on Wednesday, marking its second consecutive session of gains despite uncertainty over US President Donald Trump’s tariff plans. While Australia’s economy is heavily export-dependent, its direct exposure to the US remains limited. Meanwhile, the Reserve Bank of Australia kept its cash rate unchanged at 4.1% on Tuesday, as expected. The RBA acknowledged that core inflation was easing in line with forecasts but stressed the need for greater confidence in the trend’s persistence. Notably, the central bank removed its previous reference to being cautious on further easing, signaling a slight dovish shift. Elsewhere, fresh data showed that Australian industrial activity contracted further in March, weighed down by uncertainties surrounding US tariffs and domestic politics.

Bank of Japan (BoJ) Governor Kazuo Ueda cautioned that new U.S. tariffs could have a substantial impact on global trade and economic growth. Addressing Japan's parliament, Ueda underscored the uncertainty surrounding the potential effects of reciprocal tariffs on trade flows, business sentiment, and inflation. The newly imposed levies, which take effect on April 3, include a 25% duty on auto imports. These come in addition to existing U.S. tariffs on aluminum and steel, as well as higher duties on all Chinese imports. Ueda plans to raise these concerns at the upcoming G20 meeting, where U.S. trade policies and their repercussions will be a central discussion point. Analysts suggest the economic fallout could influence the BoJ's decision on interest rates, with a hike anticipated in Q3 of 2025, likely in July.

The South Korean won strengthened past 1,466 per dollar on Wednesday, extending gains from the previous session following the release of inflation data. March's annual inflation edged up to 2.1% from 2% in the previous month, surpassing expectations. This uptick comes amid the Bank of Korea's aggressive rate-cutting cycle, which has slashed the policy rate by 75 bps, lowering it to a two-year low of 2.75%. Investor sentiment was further boosted by a recent trade surplus report, which showed a surplus of $4.99 billion, marking the second consecutive month of surplus. Exports rose 3.1% year-on-year to a three-month high of $58.3 billion, with all IT sectors posting growth for the first time in eight months. On the political front, uncertainty subsided as the Constitutional Court confirmed it will issue its ruling on President Yoon’s impeachment this Friday. Meanwhile, investors remained cautious ahead of the imminent implementation of US President Donald Trump’s reciprocal tariffs.

Gold rose above $3,130 per ounce on Wednesday, climbing back toward record levels reached in the previous session, driven by risk aversion as markets braced for additional US tariffs that could escalate the global trade war. The White House did not disclose details on the tariffs' scope but said they would take effect immediately after being unveiled. President Trump also hinted the duties would impact many countries, raising concerns about broad economic fallout. Additionally, gold was supported by expectations of interest rate cuts, central bank buying, and strong demand for gold-backed ETFs. The Chinese gold ETF added 233,000 ounces of notional bullion over the past week. Meanwhile, recent U.S. economic releases showed weak jobs data and a poor manufacturing report. Investors are now focused on Friday's nonfarm payroll report for more insights into the Fed's rate path.

The Shanghai Composite rose 0.3% to around 3,360 on Wednesday, building on the previous session’s gains as investors awaited clarity on US President Donald Trump’s upcoming tariffs. Reports suggest Trump is considering a universal 20% tariff on most imports, though a country-specific reciprocal approach remains likely. Meanwhile, Chinese stocks rebounded as strong manufacturing data pointed to robust external demand despite US trade pressures. Investors now turn their attention to Thursday’s service and composite PMI reports for further economic insights. Among notable gainers were Kyland Technology (+15.6%), East Money Information (+1.6%), Ningbo Shuanglin (+5.7%), Zhejiang Huatie (+5%), and Lanzhou LS Heavy (+4.3%).

The dollar index held steady on Wednesday, trading sideways this week as investors awaited President Donald Trump’s latest tariff announcement, which he dubbed “Liberation Day.” The White House confirmed that reciprocal tariffs on nations imposing duties on US goods would take effect immediately. However, Treasury Secretary Scott Bessent stated that the tariffs would act as a “cap,” allowing countries to take steps to reduce them. Meanwhile, data on Tuesday showed US factory activity contracted in March for the first time this year, with prices rising for a second consecutive month, reflecting the impact of tariffs. Job openings declined in February, but layoffs remained low, signaling a gradually cooling labor market. Investors now turn their attention to the ADP employment report on Wednesday and nonfarm payrolls on Friday for further insights into Federal Reserve policy.

Top currency gainers are New Zealand Dollar (0.44%), South Korean Won (0.27%), Australian Dollar (0.26%) and Chinese Yuan (0.05%). Biggest losers are Japanese Yen (-0.16%).