US Producer Prices rose 3.4% in February from a year earlier, according to the latest figures from the Bureau of Labour Statistics (BLS). The print came in well above estimates (2.9%) and the 2.9% gain recorded in the previous month.

TradingKey - US inflationary pressures are showing signs of heating up again. The latest data from the US Department of Labor shows that the Producer Price Index (PPI) for February rose across the boa

ING economist Rogier Quaedvlieg argues that the latest energy shock, driven by the Strait of Hormuz closure, is a cost‑push shock that raises US inflation while weakening growth.

Canada Foreign Portfolio Investment in Canadian Securities registered at $46.73B above expectations ($4.72B) in January

Canada Canadian Portfolio Investment in Foreign Securities declined to $11.39B in January from previous $13.06B

United States Producer Price Index ex Food & Energy (YoY) above forecasts (3.7%) in February: Actual (3.9%)

United States Producer Price Index ex Food & Energy (MoM) came in at 0.5%, above forecasts (0.3%) in February

United States Producer Price Index (YoY) registered at 3.4% above expectations (2.9%) in February

United States Producer Price Index (MoM) registered at 0.7% above expectations (0.3%) in February

TradingKey - The Federal Reserve will announce its latest interest rate decision at 2:00 PM ET on March 18.It has become a foregone conclusion that the Fed will maintain the current benchmark interest

South Africa Retail Sales (YoY) came in at 4.2%, above forecasts (2.5%) in January

United States MBA Mortgage Applications fell from previous 3.2% to -10.9% in March 13

The United States (US) Federal Reserve (Fed) announces its interest rate decision on Wednesday, a pivotal meeting for markets to gauge the stance of the world’s most important central bank after an energy shock that could put the Fed’s dual mandate in tension.

OCBC’s Sim Moh Siong and Christopher Wong note the Australian Dollar recovered after the RBA’s 5–4 split decision to deliver a second consecutive 25bp hike to 4.10%, with Governor Bullock’s remarks seen as hawkish.

Societe Generale economists expect the BoC to keep its policy rate at 2.25%, despite weaker employment and lower CPI. Markets now price about 33 bps of tightening by year-end after the Iran conflict.

MUFG’s Derek Halpenny expects the FOMC to keep policy options open, with limited changes to the Summary of Economic Projections and no alteration to the median dot profile. MUFG anticipates balanced Fed communication and subdued FX and rates volatility.

Danske Research Team highlights that USD/CAD remains confined between 1.36 and 1.37 as risk-off sentiment offsets support from Canada’s net energy exporter status.

West Texas Intermediate (WTI) oil price has given up its recent gains from the previous session, trading around $93.20 per barrel during the Asian hours on Wednesday. Traders are awaiting the US Energy Information Administration (EIA) report due later on Wednesday for fresh cues on supply trends.

Austria HICP (YoY) increased to 2.3% in February from previous 2%

Austria HICP (MoM) meets forecasts (0.8%) in February

South Africa Consumer Price Index (MoM) rose from previous 0.2% to 0.4% in February

South Africa Consumer Price Index (YoY) dipped from previous 3.5% to 3% in February

UBS' Chief Economist Paul Donovan notes that the Federal Reserve is widely expected to keep policy unchanged, with attention centered on Fed Chair Powell’s press conference. Markets are looking for Powell’s reaction to Oil prices, the war and implications for US retail gasoline.

China's foreign ministry said during the European trading session on Wednesday that it will provide updates about the delay in United States (US) President Donald Trump’s meeting with Chinese leader Xi Jinping.

Commerzbank strategist Hauke Siemßen argues that ECB expectations will dominate trading, with forwards now fully pricing the first rate hike by September and only a 50% chance of another move by year-end.

TD Securities stategists expect the Bank of Canada to keep its overnight rate at 2.25% with a cautious tone, as growth and inflation run below projections. They highlights elevated uncertainty and new inflation risks from the Iran conflict and higher Oil prices.

Danske Research Team notes that EUR/USD moved back above 1.15 as US Treasury yields declined and risk sentiment recovered. The bank does not expect the upcoming FOMC meeting to significantly alter the EUR/USD outlook, seeing the Federal Reserve in a wait-and-see mode regarding the Iran conflict.

Standard Chartered’s Christopher Graham expects the Bank of England to keep rates unchanged at its 19 March meeting, with a 7–2 split as two members likely back a 25 bps cut.

Australia’s Treasurer Jim Chalmers said on Wednesday that Iran war could add a further quarter of a percentage point to headline inflation and double the negative impact on Gross Domestic Product (GDP).

Commerzbank’s Michael Pfister expects the Bank of Canada to leave rates unchanged, in line with Bloomberg consensus.