Forex Today: The UK docket takes centre stage with the BoE and jobs report
The Greenback managed to regain some balance and set aside three consecutive daily pullbacks after the Fed maintained its interest rates at its meeting, as widely anticipated.
Here is what you need to know on Thursday, March 20:
The US Dollar Index (DXY) regain some buying traction and bounced off the area of multi-month lows despite a post-Fed pullback in US yields across the curve. The usual weekly Initial Jobless Claims are due, seconded by the Philly Fed Manufacturing Index, Existing Home Sales, and the CB Leading Index.
EUR/USD retreated markedly and returned to the sub-1.0900 region in response to the improved sentiment around the Greenback. Producer Prices in Germany will be released along with the Construction Output in the broader euro area. In addition, the ECB’s Lagarde and Lane are due to speak.
GBP/USD came under renewed selling pressure and retested the area of two-day lows near 1.2960, just to bounce afterwards. A very interesting UK calendar will see the BoE’s interest rate decision, seconded by the release of the labour market report and the CBI Industrial Trends Orders.
USD/JPY gave away the initial move past 150.00 and retreated to the 148.80 zone following the Fed’s decision. Next on tap on the Japanese calendar will be the release of the Inflation Rate and weekly Foreign Bond Investment figures.
AUD/USD kept the offered stance in place and dropped to the low-0.6300s, approaching three-day lows at the same time. The Australian labour market report will be the sole release in Oz.
WTI prices advanced modestly above the $67.00 mark per barrel amid traders’ assessment of the ongoing US trade policy as well as geopolitical news from the Russia-Ukraine war.
Gold prices advanced to a record peak past the $3,050 mark per troy ounce after the Fed hinted at two rate cuts this year and US yields receded across the board. Silver prices faced some downside pressure after climbing to yearly peaks past the $34.00 mark per ounce in the previous day.