FX: The Canadian dollar weakened against its US counterpart, hitting a one-week low before recovering a touch (the USD/CAD peaking at 1.452, then pulling back and settling around 1.448). Against this backdrop, the euro was the G10 currency that appreciated the most against the US dollar, rising by 0.85% to 1.093, setting a four-month high.
The Swedish krona followed the euro's progress and remained stable against the single currency, with the EUR/SEK at 10.97. Sterling enjoyed mixed fortunes.
The cable appreciated to 1.293, benefiting from the greenback's weakness and fears of a US recession. On the other hand, sterling weakened against an invigorated euro, the EUR/GBP firming to 0.844.
Commodities: oil prices traded higher near the close during Tuesday's session, with Brent up 1.0% around $69.94/bbl. Prices rebounded from sharp losses on Monday - reports indicate that Kazakhstan has yet to enact promised production cuts for March after the Kazakh oil minster stated the country would comply with its OPEC quota this month.
The monthly EIA report cut its expectation for oversupply in 2025 by 0.4mn b/d, with balances now expected to be 0.1mn b/d oversupplied this year - the 2026 surplus was revised down from 1mn b/d to 0.5mn b/d.
European gas prices closed 5.9% higher at €43.5/MWh, with reports on Ukrainian acceptance of the US peace plan coming after the close - prices had rallied on forecast colder weather over the next week and earlier reports that Putin had set out maximalist demands as part of Russia's negotiating position.
