Asian stocks came under pressure on Thursday as the threat of imminent U.S. military action in Syria rattled investors and sent oil prices to their highest levels since late 2014 on concerns about supply. Trump declared that missiles “will be coming” in Syria, taunting Russia for supporting Syrian President Bashar al-Assad after a suspected chemical attack on rebels. Damascus and Moscow have denied any responsibility.
Minutes of the Federal Reserve’s last policy meeting on March 20-21 released on Wednesday showed all of its policymakers felt that the U.S. economy would firm further and that inflation would rise in the coming months’. consumer inflation figures matched economists’ forecasts.
Prices fell for the first time in 10 months from the previous month in March, but the core CPI rose 2.1 percent year-on-year, the largest advance since February 2017, as the drag from last year’s plunge in prices for cell phone service plans dropped out of the calculation.
Fears of more confrontations in the Middle East have boosted oil prices as well as safe-haven assets such as gold. Both U.S. crude and global benchmark Brent traded at the highest levels since 2014 as geopolitical concerns overshadowed a surprise build up in U.S. crude inventories.
U.S. crude futures CLc1 traded at $67.10 a barrel, having risen 8.1 percent so far, this week. They have traded as high as 67.45, a level last seen in 2014. Brent traded at 72.26 a barrel, having touched a high of 73.09. Gold stood at 1,353.10 per ounce, having climbed to 1,365.30.
In currency markets EURUSD traded at 1.2370, having risen for a fourth day in a row on Wednesday. Still, the currency has mostly been in a holding pattern since late January. USDJPY eased to 106.82 having lost momentum after hitting a five-week high of 107.49 a week ago.
Forex market economic is starting today with a focus on major economic data related speeches by senior central bank officials. The key economic event for today the BOE Gov Carney Speech, There is also a plethora of economic data related to the economy of USA and Eurozone as ECB Monetary Policy Meeting Accounts data, German Buba President Weidmann Speech US Unemployment Claims . Moderate to high volatility and price action is expected mainly for the US Dollar and the British Pound.