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Forex Today: Markets Undecided After Monday’s Turmoil

This is what you need to know to trade today Tuesday March 21:

Market participants refrain from committing to large positions early on Tuesday after chaotic choppy action on Monday. The European economic agenda will include the ZEW survey of the euro zone and Germany. Later, Statistics Canada to publish inflation figures. Lastly, US Existing Home Sales will be released first thing in the American session.

Risk flows dominated market activity earlier in the week, but the sharp fall in global bond yields in the European session caused investors to take a step back. However, Wall Street’s main indices managed to close in positive territory on Monday and the yield on the 10-year US Treasury again rose above 3.4%. Meanwhile, the US dollar struggled to hold its ground against its rivals.

As of early Tuesday, the DXY Dollar Index is holding slightly below 103.50 and the 10-year US Treasury yield is in the 3.4-3.5% range. US stock index futures are up around 0.2%, reflecting a slight improvement in risk sentiment.

The pair EUR/USD it took advantage of the general weakness of the US dollar and closed above 1.0700. The pair remains in a consolidation phase near Monday’s closing level. “We are very confident that the capital and liquidity positions of banks in the Eurozone far exceed the requirementsEuropean Central Bank (ECB) President Christine Lagarde said as she testified before the European Parliament’s Committee on Economic and Monetary Affairs on Monday.

He GBP/USD it gained almost 100 pips on Monday and posted its highest daily close since early February. The pair underwent a technical correction on Tuesday and is now trading slightly lower near 1.2250.

The minutes of the monetary policy meeting of the Reserve Bank of Australia have revealed at the Asian session that policy makers agreed to reconsider the arguments for a pause, “recognizing that a pause would allow more time to reassess the outlook for the economy“. Although the AUD/USD Rising to a daily high of 0.6720 as an initial reaction, the pair struggled to maintain its bullish momentum. At the time of writing, the pair was trading near 0.6700.

It is expected that the Canadian Consumer Price Index (CPI) falls to 5.4% in February, compared to 5.9% in January. On Monday, the recovery in crude oil prices helped the commodity sensitive CAD to find demand and the USD/CAD it closed in negative territory below 1.3700. The pair consolidates Monday’s losses and remains slightly below 1.3700 early Tuesday.

The price of gold it lost traction after rising to yearly highs above $2,000 on Monday and ended the day in the red. XAU/USD struggles for a bounce in European morning trading below $1,980.

Following last week’s impressive recovery, the Bitcoin it corrected lower and closed below $28,000. As of this writing, BTC/USD is down almost 1% on the day and stands at around $27,600. He ethereum it fell almost 3% on Monday and continues to fall towards $1,700 by early Tuesday.

Source: Fx Street

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