Market Update – March 12
Here’s a brief overview of what’s happening today, Thursday, March 12th.
As the week progressed, markets became more cautious, mainly due to intensifying conflicts in the Middle East. This Thursday, the U.S. will release its weekly jobless claims data, along with January housing starts and merchandise trade balance information.
USD Performance this Week
The changes in the US dollar (USD) against major currencies this week indicate that it has been particularly strong against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | -0.34% | 0.51% | -0.13% | -2.05% | -0.64% | 0.27% | |
| EUR | 0.02% | -0.33% | 0.55% | -0.12% | -2.05% | -0.63% | 0.28% | |
| GBP | 0.34% | 0.33% | 0.89% | 0.21% | -1.73% | -0.30% | 0.60% | |
| JPY | -0.51% | -0.55% | -0.89% | -0.63% | -2.53% | -1.13% | -0.23% | |
| CAD | 0.13% | 0.12% | -0.21% | 0.63% | -1.93% | -0.50% | 0.39% | |
| AUD | 2.05% | 2.05% | 1.73% | 2.53% | 1.93% | 1.45% | 2.36% | |
| NZD | 0.64% | 0.63% | 0.30% | 1.13% | 0.50% | -1.45% | 0.91% | |
| CHF | -0.27% | -0.28% | -0.60% | 0.23% | -0.39% | -2.36% | -0.91% |
So, in essence, the table above illustrates how the dollar is performing relative to other currencies. For instance, a reading against the Japanese yen suggests a strong position for the dollar.
In other news, the International Energy Agency (IEA) reported that its 32 member countries have collectively decided to release 400 million barrels of oil from emergency reserves. This announcement has somewhat curtailed rising oil prices, even though recent developments in the Middle East have reignited concerns over oil supply.
For instance, Iraq has halted operations at its oil ports amid tensions, following reported Iranian attacks on foreign oil vessels. Additionally, there have been interceptions of Iranian missiles and drones over countries like Bahrain, Kuwait, and the United Arab Emirates. On another note, the Saudi Ministry of Defense shared that they downed two drones aimed at their Shaybah oil field.
In a related move, China effectively banned refined fuel exports starting in March, as reported by Reuters. This decision seems aimed at preventing a potential shortage linked to the ongoing US-Israel conflict involving Iran.
Currently, West Texas Intermediate (WTI) crude oil is trading at around $90.40, showing a rise of about 3.5%, while Brent crude oil has climbed 3% to approximately $94.40 per barrel.
The US dollar index has been holding steady, just below 99.50, benefiting from the overall negative sentiment in the market. On the contrary, US stock index futures have dropped by 0.7% to 0.9% during the day.
As for currency movements, the euro has seen a slight decline, trading at about 1.1550, while the GBP/USD pair is struggling, now below 1.3400 due to renewed pressure from a stronger dollar. The USD/JPY exchange rate rose more than 0.5% earlier, reaching just above 159.20, the highest level since mid-January before correcting to below 159.00.
Ultimately, gold has remained relatively stable, trading under $5,200 this morning.
(Note: This article has been updated to clarify that the IEA’s oil reserve release announcement was made on Wednesday, not Thursday.)
