From Investing.com: 2024-04-05 02:57:00

Risk appetite took a hit as Federal Reserve speakers expressed caution about the timing of the first rate cut, and tensions in the Middle East escalated after Israel bombed the Iranian embassy in Damascus. Oil prices spiked to $87.50pb, with fears of a short-term rally to $95/100pb range due to Iran’s direct involvement.

The latest spike in oil prices may derail the Fed from its plan of three rate cuts this year, with increasing caution expressed by Fed speakers on inflation readings. The upcoming US jobs data will highlight whether the Fed will cut rates three times this year as expected.

European Central Bank officials are leaning towards a June rate cut, while falling inflation in Switzerland may prompt the Swiss National Bank to opt for more rate cuts to boost the economy. Carry traders are shifting towards Swiss francs for funding their trades, leading to a potential softening of the franc.



Read more at Investing.com: Jobs Data in Focus as Mood Sours Amid Fed’s Rate Cut Debate, Geopolitical Tensions