Next, what you need to know on Wednesday, March 26:
He US Dollar (USD) It remains firm in front of its main rivals early on Wednesday, with the USD index keeping stable above 104.00 after breaking a four -day streak on Tuesday. The US economic calendar will present data on durable goods orders for December. In addition, several responsible for the Federal Reserve (Fed) will vote speeches in the second half of the day.
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 Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.30% | 0.03% | 0.77% | -0.72% | -0.74% | -0.34% | 0.09% | |
| EUR | -0.30% | -0.39% | -0.03% | -0.98% | -1.06% | -0.59% | -0.18% | |
| GBP | -0.03% | 0.39% | 0.76% | -1.22% | -0.70% | -0.20% | 0.10% | |
| JPY | -0.77% | 0.03% | -0.76% | -1.48% | -1.53% | -1.09% | -0.70% | |
| CAD | 0.72% | 0.98% | 1.22% | 1.48% | 0.03% | 0.38% | 0.81% | |
| Aud | 0.74% | 1.06% | 0.70% | 1.53% | -0.03% | 0.48% | 0.89% | |
| NZD | 0.34% | 0.59% | 0.20% | 1.09% | -0.38% | -0.48% | 0.49% | |
| CHF | -0.09% | 0.18% | -0.10% | 0.70% | -0.81% | -0.89% | -0.49% |
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 National Statistics Office (ONS) of the United Kingdom reported early Wednesday that annual inflation, measured by the variation of the consumer price index (CPI), was softened to 2.8% in February from 3% in January, being below the market expectation of 2.9%. The underlying IPC, which excludes volatile food and energy prices, rose 3.5% in this period, compared to the 3.7% increase recorded in January. In monthly terms, the CPI rose 0.4% after falling 0.1% before. He GBP/USD He has difficulty gaining traction after these data and quotes in negative territory below 1,2950. Later in the day, the Foreign Minister of the Exchequer will pronounce the Spring Declaration of the United Kingdom 2025 in the House of Commons.
The disappointing US consumer confidence data made it difficult for the USD to exceed its rivals on Tuesday. Meanwhile, the main Wall Street indices registered small profits in the day. In Wednesday, the futures of the stock market indices of the US marginally quote on the day, reflecting a cautious mood in the market.
He EUR/USD He closed the fifth day of consecutive negotiation in negative territory on Tuesday. The pair manages to limit its losses but remains below 1,0800 in the European morning on Wednesday.
The US president Donald Trump said in an interview with Newsmax on Wednesday that he plans to implement tariffs on copper imports in a matter of weeks. Copper prices shot at a new historical maximum after this development. In turn, the AUD/USD Win traction and quote above 0.6300 in the European morning.
He USD/JPY He reversed his direction after a three -day increase and lost 0.5% on Tuesday. The pair stars in a rebound and trades about 150.50 in the early European session.
After stabilizing above $ 3,000 on Tuesday, the Gold registered small daily profits. The Xau/USD struggles to gather bullish impulse but remains comfortably above $ 3.020 on Wednesday.
FAQS inflation
Inflation measures the rise in prices of a representative basket of goods and services. General inflation is often expressed as an intermennsual and interannual percentage variation. The underlying inflation excludes more volatile elements, such as food and fuel, which can fluctuate due to geopolitical and seasonal factors. The underlying inflation is the figure on which economists focus and is the objective level of central banks, which have the mandate of maintaining inflation at a manageable level, usually around 2%.
The consumer price index (CPI) measures the variation in the prices of a basket of goods and services over a period of time. It is usually expressed as an intermennsual and interannual variation. The underlying IPC is the objective of the central banks, since it excludes the volatility of food and fuels. When the underlying IPC exceeds 2%, interest rates usually rise, and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually translates into a stronger currency. The opposite occurs when inflation falls.
Although it may seem contrary to intuition, high inflation in a country highlights the value of its currency and vice versa in the case of lower inflation. This is because the Central Bank will normally raise interest rates to combat the greatest inflation, which attracts more world capital tickets of investors looking for a lucrative place to park their money.
Formerly, gold was the asset that investors resorted to high inflation because it preserved their value, and although investors often continue to buy gold due to their refuge properties in times of extreme agitation in the markets, this is not the case most of the time. This is because when inflation is high, central banks upload interest rates to combat it. Higher interest rates are negative for gold because they increase the opportunity cost to keep gold in front of an asset that earns interest or place money in a cash deposit account. On the contrary, lower inflation tends to be positive for gold, since it reduces interest rates, making bright metal a more viable investment alternative.
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.
