FxWirePro: Daily Commodity Tracker - 21st March, 2022 
US Moves to Secure Gulf Shipping Amid Rising Tensions with Iran 
Gold Prices Hold Steady Amid Iran Tensions and Interest Rate Uncertainty 
Iran Warns No Military Fix for Hormuz Crisis as Talks Show Progress 
Eurozone Recession Risks Rise as Middle East Conflict Threatens Growth, ECB Official Warns 
Asian Markets Slip Amid Strait of Hormuz Tensions and RBA Rate Hike Expectations 
Asian Stocks Rise Slightly as Oil Prices Hold Steady Amid Middle East Uncertainty 
Fed’s Goolsbee Warns Inflation Remains Elevated, Signals Caution on Rate Cuts 
Asian Stocks Rise as South Korea Hits Record High on AI Chip Rally 
While the United Kingdom has been surprising the markets, economist and the doomsayers with continued resilience after the referendum in June, on the other side of the world the United States’ economic performance has taken a slide compared to the prevalence expectations. Citi’s UK economic surprise index has reached the highest level in almost three years but the economic surprise index in the United States has taken a downturn since July.
Though, two central banks are on a different path of monetary policy. The Bank of England (BoE) has recently unveiled a fresh package of stimulus measures, whereas the Federal Reserve is looking to hike interest rates. With economic surprises diverging, the market expectations of the monetary policy divergence are likely to slide and provide support to the GBP/USD exchange rate and even lead to a recovery.
The pound is currently trading at 1.323 against the dollar, a break above 1.34 are could push the pair towards 1.38
