22/04/2026 - 07:41 UTCThe USDX held its ground near 98.40 during Wednesday’s Asian session, consolidating after a day that saw the index rise 0.36%. The Greenback remains supported despite a sudden shift in rhetoric from President Trump, who announced an extension of the ceasefire with Iran to allow for further negotiations. This move contrasts with earlier threats of military action, though the underlying tension remains high. The Dollar continues to draw strength from resilient domestic data; the U.S. Census Bureau reported a 1.7% surge in March Retail Sales, comfortably beating market expectations and underscoring the robust health of the American consumer.
Gold saw a recovery toward the European open, bouncing off a one-week low as the temporary ceasefire extension weighed slightly on the Dollar’s momentum. However, this follows a significant decline on Tuesday where the precious metal fell -1.74%. The bullion's upside remains capped by a "less dovish" outlook for the Federal Reserve, reinforced by hawkish-leaning comments from Fed Chair-designate Kevin Warsh during his Senate confirmation hearing. Additionally, with the U.S. maintaining its naval blockade of Iranian ports, the persistent geopolitical risk premium continues to support the Dollar as the preferred safe haven, keeping XAU/USD bulls cautious.
WTI Oil experienced intense volatility, trading near the $87.50 mark after a massive 5.01% surge on Monday. While prices pulled back slightly following Trump’s unilateral ceasefire extension, the market remains on edge due to the collapsed second round of peace talks in Islamabad. Supply concerns are being exacerbated by the ongoing blockade of the Strait of Hormuz, which has effectively paralyzed commercial shipping traffic. Supporting the price floor, latest API data revealed a much larger-than-expected draw of 4.4 million barrels in U.S. crude inventories, signaling that physical demand remains incredibly tight despite the geopolitical standoff.
Asian markets exhibited a divergent performance on Wednesday as investors processed a shift in geopolitical rhetoric alongside robust regional trade data. While some benchmarks faced pressure from overnight weakness in high-growth sectors on Wall Street, Japan’s Japan 225 outperformed, climbing 1.14% to reach new record levels. This advance was supported by official figures showing Japanese exports grew by 11.7% in March, marking a seventh consecutive month of expansion and surpassing market expectations.
In Greater China, the China SSE edged up 0.49% early Wednesday, showing resilience despite broader regional caution. Conversely, the Hong Kong 50 declined -0.43%, as technology shares faced a pullback following the retreat of major U.S. indices. South Korea’s Korea 200 managed a modest gain of 0.26%, stabilizing after reaching recent record highs. Sentiment across the region remained tempered by the collapse of planned peace talks in Islamabad and the ongoing disruptions in the Strait of Hormuz, which have kept energy concerns at the forefront.
Broader market attention remains fixed on Washington following the Senate testimony of the Fed Chair-designate. His emphasis on central bank independence and a potential "regime change" in monetary policy has led to a re-evaluation of future interest rate trajectories. As main U.S. equity indices volatility persists, the Asian tech sector continues to be sensitive to shifting geopolitical headlines and the evolving stance of the Federal Reserve, balancing localized economic strength against global macroeconomic uncertainty.
As the week progresses, the focus shifts to a high-stakes combination of corporate and economic data. The "Magnificent Seven" earnings cycle kicks off with Tesla, where investors will be looking for clarity on its pivot toward specialized AI chip production and its partnership with Intel, who is also slated to report. Beyond the tech sector, the macroeconomic landscape will be defined by critical activity indicators, including the Flash U.K. Manufacturing and Services PMI data, which will provide a vital pulse check on industrial and service sector resilience. Looking further ahead, the week concludes with U.K. Retail Sales figures on Friday.
The EUR/USD pair edged lower on Tuesday with investors favoring the US Dollar amid ongoing geopolitical uncertainty linked to tensions between the United States and Iran.
Market sentiment remained cautious after US President Donald Trump announced late Tuesday that the ceasefire with Iran would be extended indefinitely, just one day before its scheduled expiration. The move came despite the collapse of plans for a new round of negotiations between the two sides.
At the same time, an adviser to Iran’s chief negotiator described the extension as a tactic to gain time, while Iran’s military warned it was prepared to launch strikes on predetermined targets in response to repeated threats from Washington.
Earlier in the day, US economic data pointed to continued resilience in consumer spending and the labor market. Headline Retail Sales rose 1.7% month-on-month in March, beating market expectations of 1.4% and accelerating from February’s 0.7% gain, helped in part by higher gasoline prices amid rising Middle East tensions.
Investors are now turning their attention to upcoming economic data. Preliminary HCOB Purchasing Managers’ Index (PMI) readings for Germany and the Eurozone are due Thursday, with stronger-than-expected figures likely to lend support to the euro. In the United States, traders will also monitor the release of S&P Global PMI data for April later the same day.
Gold prices moved sharply on Tuesday as easing geopolitical demand and stronger-than-expected US economic data weighed on the precious metal.
The decline came after reports that US President Donald Trump would extend the ceasefire with Iran until negotiations between the two countries show progress.
Although tensions in the region and concerns over potential disruptions to the Strait of Hormuz continue to keep energy markets on edge, the temporary easing in conflict risks has prompted some investors to lock in profits following gold’s recent rally.
At the same time, rising oil prices are fueling inflation concerns, which may encourage central banks to keep interest rates elevated for longer. Higher interest rates typically reduce the appeal of non-yielding assets such as gold.
Additional pressure came from upbeat US macroeconomic data released on Tuesday. According to the US Census Bureau, Retail Sales rose 1.7% month-on-month in March, accelerating from February’s revised 0.7% increase and beating market expectations for a 1.4% gain.
On an annual basis, Retail Sales increased 4.0% in March, matching the previous month’s reading and highlighting continued strength in US consumer demand.
The stronger data reinforced expectations that the US economy remains resilient, supporting the US Dollar and Treasury yields, both of which tend to weigh on dollar-denominated gold prices.
Looking ahead, traders will continue to monitor developments in the Middle East, movements in oil prices, and incoming US economic releases for fresh direction in the gold market.
Oil prices edged lower in choppy Asian trading on Wednesday after US President Donald Trump announced an indefinite extension of the ceasefire with Iran, easing immediate fears of renewed conflict. However, ongoing uncertainty over future peace talks and continued supply disruptions kept losses limited.
Market sentiment improved after Trump said the ceasefire with Iran would remain in place indefinitely, allowing more time for diplomatic efforts aimed at ending the conflict.
Still, crude prices remained supported by persistent concerns over supply flows, particularly with the Strait of Hormuz still effectively closed and a US naval blockade on Iran largely intact. Shipping traffic through the strategic waterway reportedly remained minimal.
Despite the ceasefire extension, uncertainty surrounding future negotiations remains elevated. Both Washington and Tehran reportedly declined to send delegates to a planned round of talks in Pakistan this week.
Investors are expected to remain highly sensitive to developments surrounding the Strait of Hormuz, diplomatic negotiations, and any signs of changes to regional oil supply flows.
US stock index futures moved higher late Tuesday after President Donald Trump announced an indefinite extension of the ceasefire with Iran, helping calm investor fears of an immediate escalation in Middle East tensions.
The rebound followed a weaker regular Wall Street session, where major US indices closed lower as investors reduced risk exposure amid uncertainty over whether the ceasefire would hold.
Trump’s announcement came just hours before the temporary truce was due to expire, with the US president stating that the extension would provide more time for negotiations between Washington and Tehran.
Meanwhile, economic data released Tuesday showed US consumer demand remained strong. Retail Sales rose 1.7% month-on-month in March, the largest increase in a year and above market expectations, highlighting resilience in household spending despite higher fuel costs.
Attention is now turning to a fresh batch of corporate earnings due before Wednesday’s opening bell, which could help shape broader market sentiment. Among the major companies scheduled to report are Boeing and AT&T.
Markets are likely to remain sensitive to developments in US-Iran relations, oil price movements, incoming economic data, and the tone of the ongoing earnings season.
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