Here’s what you need to know on Thursday, March 23:
In a volatile session, Wall Street ended lower on the day of the Fed’s policy decision. The US central bank raised rates by 25 basis points as expected. The end of the tightening cycle is nearing, as the Federal Reserve is torn between high inflation and banking turmoil. Stocks jumped after the announcement, but then pulled back, reversing, helped by comments from US Treasury Secretary Janet Yellen. She said that there is no “general insurance” for bank deposits.
US yields fell on Wednesday, with the 10-year yield falling to 3.43% and the 2-year yield to 3.92%. The Dollar Index lost 0.65%, falling for the fifth day in a row. Despite hitting weekly lows against most of its rivals, the dollar ended up far from the lows, giving some positive signs. volatility in the forex market it will remain elevated and could trigger a broad recovery or drive the dollar to new lows.
He Japanese yen was one of the most bullish currencies, helped by declining US yields. The USD/JPY pair posted its second lowest close in a month, below 131.50.
The euro it also rose broadly, supported by comments from European Central Bank (ECB) officials suggesting that if the banking crisis subsides, more rate hikes appear more likely. The combination of post-FOMC dollar weakness and euro strength pushed EUR/USD to 1.0911, the highest level since February 2, before easing back to 1.0860.
Bank is likely of England announce another rate hike on Thursday, after the meeting of its Monetary Policy Committee. Consensus forecasts point to a 25 basis point rise, especially after inflation unexpectedly accelerated in February, with the annual rate rising to 10.4%. GBP/USD reached levels above 1.2300 on Wednesday, but ended around 1.2260. It still has a bullish bias but still can’t consolidate above 1.2300.
USD/CHF it fell below 0.9200 and hit its lowest level in a week. The Swiss National Bank (SNB) announces its monetary policy decision on Thursday, with market participants expecting a 50 basis point rate hike to 1.50%.
Subjects cousins were affected by the fall in stock prices on Wall Street. AUD/USD suffered a sharp reversal from 0.6759 to 0.6680, NZD/USD approached 0.6300 and finished closer to 0.6200, while USD/CAD rallied as high as 1.3655, ending the day above 1.3730. Stocks are driving the directions of the pairs right now.
Bitcoin fell after the FOMC meeting, from $28,800 to $27,700. He Gold and the Silver jumped driven by lower US yields. Prices of the Crude oil ended mostly flat after hitting weekly highs.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
