Next, what you need to know on Wednesday, March 19:
Investors choose to remain on the sidelines while waiting for the Federal Reserve (FED) to announce monetary policy decisions after the March meeting. The US Central Bank will also publish the review of economic projections (SEP), the so -called points graph.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. American dollar was the weakest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.45% | -0.33% | 0.69% | -0.50% | -0.42% | -1.17% | -0.91% | |
| EUR | 0.45% | 0.00% | 0.72% | -0.05% | -0.10% | -0.73% | -0.47% | |
| GBP | 0.33% | -0.00% | 1.05% | -0.26% | -0.12% | -0.74% | -0.54% | |
| JPY | -0.69% | -0.72% | -1.05% | -1.19% | -1.31% | -1.79% | -1.73% | |
| CAD | 0.50% | 0.05% | 0.26% | 1.19% | -0.13% | -0.66% | -0.94% | |
| Aud | 0.42% | 0.10% | 0.12% | 1.31% | 0.13% | -0.59% | -0.35% | |
| NZD | 1.17% | 0.73% | 0.74% | 1.79% | 0.66% | 0.59% | 0.26% | |
| CHF | 0.91% | 0.47% | 0.54% | 1.73% | 0.94% | 0.35% | -0.26% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
He US Dollar (USD) He failed to benefit from the atmosphere of risk aversion in the market on Tuesday, and the USD index closed the third consecutive day in negative territory. In Wednesday, the index moves laterally, slightly below 103.50. Meanwhile, the futures of the US stock market rates marginally operate up after the main Wall Street rates suffered great losses on Tuesday. It is widely expected that the Fed maintains the interest rate without changes in 4.25%-4.5%. Market participants will examine the revised inflation and growth projections, and will pay special attention to the comments of President Jerome Powell at the press conference after the meeting that will begin at 18:30 GMT.
During Wednesday’s Asian negotiation hours, the Bank of Japan (BOJ) announced that it maintained the short-term interest rate in the range of 0.40% -0.50% after completing its two-day monetary policy review meeting, as anticipated. The governor of the Boj, Kazua Ueda, said they will continue to adjust the degree of monetary flexibility and added that the underlying inflation remains below 2%. He USD/JPY Win traction in the European morning and quotes in a new maximum of two weeks about 150.00.
He Gold He benefited from the climbing of geopolitical tensions and won more than 1% on Tuesday. The Xau/USD continues to spread early on Wednesday and was last quoting in a new historical maximum above 3,040 $.
He EUR/USD He recorded daily profits on Tuesday and touched its highest level since the beginning of October above 1,0950. The pair remains in a consolidation phase but manages to stay comfortably above 1,0900 in the European morning. Later in the session, Eurostat will publish reviews to the February inflation data. Several policy responsible for the European Central Bank (ECB) have scheduled speeches as well.
He GBP/USD Correct and quote below 1.3000 after closing slightly upward on Tuesday. The Bank of England will announce monetary policy decisions on Thursday.
Fed Faqs
The monetary policy of the United States is directed by the Federal Reserve (FED). The Fed has two mandates: to achieve prices stability and promote full employment. Its main tool to achieve these objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the objective of 2% set by the Federal Reserve, it rises interest rates, increasing the costs of loans throughout the economy. This translates into a strengthening of the US dollar (USD), since it makes the United States a more attractive place for international investors to place their money. When inflation falls below 2% or the unemployment rate is too high, the Federal Reserve can lower interest rates to foster indebtedness, which weighs on the green ticket.
The Federal Reserve (FED) celebrates eight meetings per year, in which the Federal Open Market Committee (FOMC) evaluates the economic situation and makes monetary policy decisions. The FOMC is made up of twelve officials of the Federal Reserve: the seven members of the Council of Governors, the president of the Bank of the Federal Reserve of New York and four of the eleven presidents of the regional banks of the Reserve, who exercise their positions for a year in a rotary form.
In extreme situations, the Federal Reserve can resort to a policy called Quantitative Easing (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non -standard policy measure used during crises or when inflation is extremely low. It was the weapon chosen by the Fed during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy high quality bonds of financial institutions. The one usually weakens the US dollar.
The quantitative hardening (QT) is the inverse process to the QE, for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the bonds that it has in portfolio that they expire, to buy new bonds. It is usually positive for the value of the US dollar.
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.
