What you need to know on Wednesday, March 3:
The US dollar lost its luster before the Wall Street open, falling against all of its major rivals. Stocks were mixed, but US Treasury yields fell and remained within familiar levels, cooling demand for the dollar. EUR / USD rallied towards the 1.2080 region, while GBP / USD settled around 1.3950. The benchmark 10-year Treasury yield stood at 1.41%.
Commodity-linked currencies rallied, even though oil and gold lacked directional strength. The XAU / USD closed at $ 1,735 a troy ounce, while the WTI ended the day below $ 60 a barrel. The USD / JPY pair surpassed at 106.95, retreating modestly before the close.
Central bankers pledged to maintain the stimulus, pouring some cold water on market concerns. RBA Governor Philip Lowe reaffirmed the commitment to maintain the three-year yield target at 10 basis points, indicating that the central bank intervened “to help with the smooth functioning of the market.” Lowe added that the RBA is ready to act as needed.
Officials at the US Federal Reserve were aware, and Lael Brainard said the central bank is focused on “progress made toward inflation and employment targets,” adding that the Fed will remain “patient” with policy. monetary. Later that day, Mary Daly said the country needs fiscal support, adding that she does not see fiscal stimulus driving inflation “in unwanted ways.”
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