crude oilAsian stocks steadied after hitting two-week lows as investors paused for breath following a heavy sell-off in recent sessions and waited to see if the dollar’s rally was sustainable.

Several Factors have stoked concerns that U.S. inflation, long subdued since the financial crisis a decade ago, could gain momentum as President Donald Trump’s tax cuts this year could stimulate an economy already near or at full employment.

In such a scenario the U.S. Federal Reserve could raise rates more than three times this year in a further blow to equities.

In currencies, The U.S. dollar, which has risen in the past five sessions against a basket of major currencies, also took a breather. USDJPY firmer at 108.81 after jumping almost 1 percent to its highest in ten weeks. EURUSD held at 1.2213 after hitting its lowest since March, due to tariffs imposed on imported steel and aluminium.

In Commodities Oil prices held near 3-year peaks supported by production cuts by oil producing countries and wariness about geopolitical risks in the face of Washington’s threat to scupper a nuclear deal with Iran. Crude Oil futures rose to 69.22 per barrel, not far from highs of 69.56 while Brent crude futures added 43 cents to 75.14.

Forex market economic calendar includes data related to the economies US and Eurozone. US Consumer Confidence Index is the main event for today in the forex market. There is also important economic data related to the economies of Germany -German Ifo Business Climate and Public Sector Net Borrowing for UK. Moderate to high volatility and price action is expected mostly for the US Dollar.