Investors are bracing for volatility as tensions in the Middle East escalate, particularly with the Israeli front in Lebanon amid a fragile ceasefire with Iran. Israeli Prime Minister faces mounting pressure over unmet promises regarding regime change, complicating the peace talks atmosphere. This geopolitical uncertainty is likely to overshadow today’s U.S. macroeconomic data, including February’s PCE inflation and consumer spending reports, which may be viewed as stale given current oil prices surpassing $90 per barrel.

An unexpected rise in core PCE inflation above 3.1% could bolster the dollar, but the prevailing geopolitical climate may dampen its impact on the broader market. Meanwhile, in Poland, the Monetary Policy Council is anticipated to maintain interest rates at 3.75%, with a cautious tone expected from the NBP Governor during the press conference.

Market professionals should remain vigilant as geopolitical developments could significantly influence asset performance, particularly in commodities and currency markets, amidst ongoing economic data releases.

Source: xtb.com