Here's what you need to know to trade today Thursday March 21:
The US dollar (USD) suffered heavy losses against its main rivals during the American session on Wednesday, as investors reacted to the Federal Reserve's (Fed) monetary policy decision and comments from Fed Chair Jerome Powell , on political perspectives. The Dollar is struggling to find demand early on Thursday. Investors are waiting for the Bank of England (BoE) monetary policy announcement and S&P Global PMI data for Germany, Eurozone, UK and US. Initial jobless claims and existing home sales for February will also be published on the US economic calendar.
The revised summary of the Fed's projections showed that Policymakers still expect a full 75 basis point reduction in the official interest rate in 2024. In the post-meeting press conference, Chairman Powell downplayed inflation concerns and put more weight on the Dollar's shoulders. Powell noted that inflation numbers were “quite elevated” in January and February, but said they have not changed the overall story on disinflation, arguing they were higher due to seasonal effects. The benchmark 10-year US Treasury bond yield fell towards 4.25% and the main Wall Street indices rebounded after the Fed event. For its part, the DXY Dollar Index lost almost 0.5% and broke a four-day winning streak. Early Thursday, US stock index futures are trading positive and the DXY index remains negative below 103.50.
Quote of the US dollar this week
The following table shows the percentage change of the United States Dollar (USD) against the main currencies this week.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.49% | -0.48% | -0.61% | -1.05% | 1.40% | -0.12% | 0.23% | |
| EUR | 0.48% | 0.01% | -0.12% | -0.57% | 1.87% | 0.36% | 0.71% | |
| GBP | 0.48% | -0.01% | -0.12% | -0.56% | 1.87% | 0.36% | 0.70% | |
| CAD | 0.61% | 0.12% | 0.12% | -0.45% | 1.99% | 0.48% | 0.83% | |
| AUD | 1.04% | 0.56% | 0.55% | 0.44% | 2.41% | 0.92% | 1.26% | |
| JPY | -1.42% | -1.92% | -1.85% | -2.03% | -2.48% | -1.53% | -1.18% | |
| NZD | 0.11% | -0.37% | -0.34% | -0.46% | -0.93% | 1.54% | 0.33% | |
| CHF | -0.22% | -0.71% | -0.71% | -0.83% | -1.27% | 1.18% | -0.35% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change in the box will represent EUR (base)/JPY (quote).
During the Asian session, Australian data showed the unemployment rate fell to 3.7% in February, from 4.1% in January. This data improved expectations of a decrease to 4%. Employment increased by 116,500 people in this period, far exceeding analysts' estimate of 40,000. He AUD/USD extends its recovery early Thursday, after posting strong gains on Wednesday, and is now up more than 0.5% on the day, above 0.6620.
He USD/JPY gained bullish momentum and approached the 152.00 level during the American session on Wednesday. The pair underwent a deep correction early in the Asian session and fell below 150.50 before regaining traction. At the time of writing, the pair is trading slightly lower on the day, near 151.00. Japanese Finance Minister Shunichi Suzuki stated earlier in the session that are closely following the evolution of the currency markets. Meanwhile, Bank of Japan Governor Kazuo Ueda stated that they hope to maintain accommodative monetary policy for the time being.
The Bank of England is expected to keep the official interest rate at 5.25% after the March meeting. Market participants will closely analyze the statement, following the lower-than-expected UK inflation data, and the division of the vote in search of new clues about the timing of the shift in monetary policy. He GBP/USD rose 0.5% on Wednesday and is now trading near 1.2800.
He USD/CHF It closed lower on Wednesday and approached 0.8850 early on Thursday. He Swiss National Bank (SNB) will announce the interest rate decision at 08:30 GMT.
The price of Gold gathered bullish momentum and rose to a new all-time high at $2,222 in the Asian session on Thursday before retreating towards $2,200.
The pair EUR/USD It surpassed the 1.0900 level late on Wednesday and continues to rise early on Thursday. The pair was trading slightly below 1.0950.
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.
