The Greenback halted its ongoing recovery and retreated markedly after the Fed left its interest rates unchanged and Powell delivered a dovish message, all morphing into extra oxygen for the risk-linked galaxy.
Here is what you need to know on Thursday, March 21:
The USD Index (DXY) plummeted to the low-103.00s after advancing well north of the 104.00 barrier earlier in the session. A busy US calendar on March 21 shows the usual weekly Initial Jobless Claims along with the Philly Fed Manufacturing Index and advanced S&P Global Manufacturing and Services PMIs. In addition, the CB Leading Index is also due followed by Existing Home Sales and the speech by FOMC M. Barr.
EUR/USD managed to advance to multi-day peaks past 1.0900 the figure in response to the Dollar’s pullback. On March 21, flash HCOB Manufacturing and Services PMIs are due.
GBP/USD advanced further and traded at shouting distance from the key 1.2800 milestone, underpinned by the weaker Greenback. In the UK, the BoE meets along with the release of preliminary S&P Global Manufacturing and Services PMIs.
USD/JPY rose to levels last seen in mid-November around 151.80 as investors continued to assess the latest BoJ gathering. Data-wise, In Japan, the Reuters Tankan Index and Balance of Trade results are due on March 21.
AUD/USD picked up renewed traction and reversed four consecutive daily declines ahead of key releases on Thursday. In the Australian calendar, the advanced Judo Bank Manufacturing and Services PMIs are scheduled for March 21 along with the labour market report and the RBA’s Consumer Inflation Expectations.
WTI prices retreated from recent tops and broke below the $81.00 mark per barrel despite persevering supply concerns and the sell-off in the greenback.
Gold prices rose sharply and revisited the $2,180 region per troy ounce following lower US yields and the collapse in the Dollar. Silver advanced strongly and tested an area last seen in early December around $25.60 per ounce.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.