On Wednesday, the dollar index (DXY00) fell by -0.34% as optimism grew for a potential end to the ongoing war in Iran. President Trump indicated the conflict might conclude within two to three weeks, pending a ceasefire request from Iran. Despite ongoing attacks in the region, including reporting from Israel and other Gulf states of Iranian assaults, the U.S. has seen recent positive economic indicators, including a +62,000 increase in March ADP employment, which exceeded expectations of +40,000.
In mortgage news, U.S. MBA mortgage applications dropped by -10.4% for the week ending March 27, with refinancing applications declining by -17.3%. The average 30-year fixed mortgage rate rose to a seven-month high of 6.57%. Meanwhile, the ISM manufacturing index unexpectedly increased to 52.7, indicating robust expansion, and retail sales rose by +0.6% in February, outpacing predictions.
Global markets reacted amid the geopolitical climate; gold prices surged by +2.87%, reaching a 1.5-week high, driven by a weaker dollar and hopes of resolution in the Middle East. Recent reports indicate that Saudi Arabia allowed U.S. military access to key bases, intensifying the impact of military actions in the region.
