This is what you need to know to trade today Thursday March 18th:
Stocks and gold are encouraging the Fed’s pessimistic decision, while the dollar is on the defensive despite high US yields. The BoE is ready to leave its policy unchanged and may express optimism as US jobless claims are in the spotlight. The vaccine dispute between the EU and the UK amidst AstraZeneca’s troubles is also in the spotlight.
Pessimistic: Only four of the 17 members of the Federal Reserve agreed with the opinion of the markets of a rate hike in 2022 and only seven in 2023. While Fed Chairman Jerome Powell tried to dismiss the forecasts of the projections, stressed that the bank will only act after seeing progress.
The pessimistic message from the Fed sent the S&P 500 to new highs and gold to around $ 1,750. The US dollar fell across the board, ignoring high ten-year returns – the global benchmark is around 1.68% at the time of writing, close to a cycle high.
See Fed Quick Look: Pessimistic Projections Lower the Dollar, Reasons It May Be a Buying Opportunity
The markets will continue to assimilate the Fed’s decision, but they will also be on the lookout for weekly jobless claims for the week of March 12, when the Non-Farm Payroll surveys were conducted. A small drop is on the table.
The Bank of england he’s ready to leave his policy unchanged and comment on recent developments in the UK and potentially hint at future policy. The minutes of the meeting may acknowledge recent improvement and drive UK yields higher.
See Bank of England Preview: Green Light for Profits? Three ways the BoE can boost the pound
The yen strengthened after Nikkei reported that the Bank of Japan may expand yield band, allowing ten-year bond yields to rise. The BOJ is scheduled to announce its decision early Friday.
The dispute between the EU and the UK over vaccines has escalated. The President of the European Commission, Ursula von der Leyen, has threatened to block exports of doses to the UK if it does not get enough supplies. Meanwhile, a slowdown in Britain’s immunization campaign is expected due to incoming vaccine shortages.
The European Medicines Agency is set to announce its verdict on the safety of AstraZeneca vaccines on Thursday, following suspensions related to suspected blood clots.
The AUD/USD it has risen above 0.78, benefiting from the pessimistic Fed decision and also strong Australian employment statistics. The country reported an increase of 88,700 jobs and a sharp drop in the unemployment rate to 5.8%.
The Bitcoin has been rising, changing hands near $ 59,000, while Ethereum and XRP have also advanced above previous levels.
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