Here's what you need to know to trade today Wednesday 20 March:
The US Dollar (USD) remains stable against its main rivals early on Wednesday, with the DXY Dollar Index fluctuating in a narrow range below 104.00 after closing the previous four days in positive territory. The Federal Reserve (Fed) will announce its monetary policy decision and publish the revised Summary of Economic Projections, the so-called dot chart, at 18:00 GMT. The president of the Fed, Jerome Powell will talk about monetary policy and economic prospects and will answer questions at a press conference starting at 18:30 GMT.
Quote of the US dollar this week
Below is the percentage change of the US Dollar (USD) against major currencies this week.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.14% | 0.13% | 0.25% | 0.39% | 1.67% | 0.71% | 0.66% | |
| EUR | -0.15% | -0.05% | 0.10% | 0.26% | 1.52% | 0.55% | 0.50% | |
| GBP | -0.10% | 0.05% | 0.15% | 0.29% | 1.57% | 0.61% | 0.55% | |
| CAD | -0.25% | -0.09% | -0.15% | 0.18% | 1.42% | 0.44% | 0.40% | |
| AUD | -0.41% | -0.26% | -0.28% | -0.15% | 1.26% | 0.30% | 0.24% | |
| JPY | -1.69% | -1.55% | -1.50% | -1.46% | -1.29% | -0.97% | -1.04% | |
| NZD | -0.71% | -0.55% | -0.58% | -0.46% | -0.30% | 0.98% | -0.05% | |
| CHF | -0.65% | -0.51% | -0.55% | -0.40% | -0.24% | 1.03% | 0.05% |
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 that appears in the box will represent EUR (base)/JPY (quote).
Wall Street's main indices posted marginal gains and the benchmark 10-year US Treasury bond retreated slightly below 4.3% on Tuesday. In the European morning, US stock index futures are slightly lower and the 10-year yield is moving sideways near 4.29%. Fed expected to keep policy rate unchanged after March meeting. Investors will analyze the dot chart for clues as to when the policy change will occur and the total amount of rate cuts policymakers anticipate this year.
The UK Office for National Statistics reported early on Wednesday that Inflation, measured by the variation in the Consumer Price Index (CPI), fell to 3.4% year-on-year in February, from 4% in January. Other details of the report have shown that the annual Retail Price Index increased by 4.5%, as expected, while the Production Price Index – Inputs decreased by 2.7%. He GBP/USD remains slightly above 1.2700 after this data.
He USD/JPY rose strongly and gained more than 1% on Tuesday following the Bank of Japan's monetary policy announcement. The pair retains its bullish momentum early on Wednesday and now trading at its highest level since November, above 151.50.
The pair NZD/USD It lost more than 0.5% on Tuesday and hit its lowest level in almost four months near 0.6030. The pair is struggling to rally and is now trading slightly lower around 0.6050. Statistics New Zealand will release fourth quarter Gross Domestic Product (GDP) data in the early hours of the Asian session on Thursday.
The pair EUR/USD It erased its daily losses after falling below 1.0850 and closed Tuesday's trading virtually unchanged. The European economic agenda will publish January construction production data. During the European day, the president of the European Central Bank (ECB), Christine Lagardewill give a speech at the conference “The ECB and its observers” in Frankfurt.
The price of Gold extended its sideways trend and recorded small losses on Tuesday. XAU/USD continues to move in a relatively tight range between $2,150 and $2,160 on Wednesday.
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.
