Here is what you need to know on Friday, March 21:
He US Dollar (USD) He acquired bullish impulse and surpassed his rivals on Thursday. The USD index, which tracks the valuation of the USD in front of a basket of six main currencies, continues to advance early Friday and remains in positive territory in the weekly graphic. The economic calendar will not have any high -impact data publication on Friday, and investors will pay close attention to the comments of the Federal Reserve officials and the US President Donald Trump.
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 strongest currency against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.42% | 0.00% | 0.42% | -0.44% | 0.57% | -0.22% | -0.15% | |
| EUR | -0.42% | -0.53% | -0.40% | -0.84% | 0.01% | -0.65% | -0.57% | |
| GBP | 0.00% | 0.53% | 0.44% | -0.53% | 0.51% | -0.13% | -0.13% | |
| JPY | -0.42% | 0.40% | -0.44% | -0.84% | -0.06% | -0.58% | -0.68% | |
| CAD | 0.44% | 0.84% | 0.53% | 0.84% | 0.80% | 0.21% | -0.28% | |
| Aud | -0.57% | -0.01% | -0.51% | 0.06% | -0.80% | -0.64% | -0.59% | |
| NZD | 0.22% | 0.65% | 0.13% | 0.58% | -0.21% | 0.64% | 0.06% | |
| CHF | 0.15% | 0.57% | 0.13% | 0.68% | 0.28% | 0.59% | -0.06% |
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).
The USD benefited from the cautious mood of the market and optimistic data publications on Thursday. After the rebound on Wednesday, the main stock market indices in the US closed the day in red. The US Department of Labor reported that there were 223,000 initial unemployment applications in the week that ended on March 15, slightly below the market expectation of 224,000. Other US data showed that existing housing sales increased 4.2% in February, after a 4.7% drop in January. In addition, the manufacturing index of the Fed of Philadelphia stood at 12.5 in March, exceeding the estimation of 8.5 analysts. In the European morning, the futures of the US stock market rates are traded in the day and the USD index consolidates their profits about 104.00.
The president of the USA, Trump, once again, urged the Fed to “do the right thing and lower interest rates” in a publicly media post on Friday.
He EUR/USD He lost about 0.5% and closed the second consecutive day in negative territory on Thursday. The pair struggles to bounce in the European morning and listed below 1,0850. Later in the day, the European Commission will publish the preliminary confidence data of the consumer for March.
The Bank of England (BOE) announced Thursday that it maintained the policy rate without changes in 4.5%, as expected widely. Only a policy officer voted in favor of a 25 basic points cut (BPS), against the expectation of the market that two responsible did. He GBP/USD He failed to win traction after the BOE event and ended the day slightly down. The pair remains defensive early on Friday and quotes below 1,2950.
Japan’s data showed that the National Consumer Price Index rose 3.7% in annual terms in February, after an increase of 4% in January. The underlying IPC increased 3% in the same period, exceeding the market forecast of 2.9%. After closing the day practically unchanged on Thursday, the USD/JPY He turned up at the Asian session on Friday and was last seen by rising around 0.4% in the day above 149.30.
He Gold He made a downward correction after reaching a new historical maximum above 3,050 $ and recorded small losses on Thursday. The Xau/USD continues to go down on Friday and quotes about $ 3,030.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for 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.
