Makro

The EUR/USD pair claws back its early losses and turns positive around 1.1730 during the Asian trading session on Monday. The major currency pair gains as the US Dollar (USD) turns upside down.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 98.45 during the Asian trading hours on Monday. The DXY edges lower after reports that Iran offered the US a proposal for reopening the Strait of Hormuz.

The USD/JPY pair trades on a flat note near 159.50 during the early Asian session on Monday. Traders prefer to wait on the sidelines ahead of the key interest rate decisions from both the Bank of Japan (BoJ) and the US Federal Reserve (Fed).

The AUD/USD pair trades in negative territory near 0.7145 during the early Asian session on Monday. The Australian Dollar (AUD) softens against the US Dollar (USD) amid fragile peace talks in the Middle East, and markets brace for the Federal Reserve (Fed) interest rate decision later on Wednesday.

Commerzbank highlights that BSP raised its policy rate by 25bp to 4.50%, signalling the start of a new tightening cycle to anchor inflation expectations.

OCBC strategists Sim Moh Siong and Christopher Wong note the central bank of Philippines Bangko Sentral ng Pilipinas' (BSP) 25bp hike to 4.5% and guidance that further increases are possible as inflation forecasts are revised higher and second-round effects emerge.

Rabobank’s Senior Macro Strategist Stefan Koopman expects the Bank of England’s (BoE) Monetary Policy Committee (MPC) to leave Bank Rate at 3.75% at the April meeting, maintaining its vigilant stance.

The US Dollar Index (DXY) is losing momentum near the 98.50 price zone and continues drifting lower from recent highs as markets unwind part of the recent US Dollar (USD) rally despite still strong United States (US) data and ongoing Middle East tensions.

DBS Group Research’s Chang Wei Liang says Japan’s March Consumer Price Index (CPI) data show underlying price pressures, with headline and core-core inflation edging higher and the Bank of Japan (BoJ) reportedly set to raise its inflation forecast.