On Thursday, the risk-off sentiment reemerged in the markets, providing additional support to the Greenback. Investors remained in a state of adjustment following the recent FOMC event and the notion of potential three rate cuts by the Fed throughout the year. Additionally, the Bank of England (BoE) opted to maintain its rates unchanged while hinting at potential future rate cuts.
Here is what you need to know on Friday, March 22:
The USD Index (DXY) exhibited strong gains, resuming its upward trajectory following a decline post-FOMC on Wednesday. As the week draws to a close, the US economic calendar remains quiet, with only speeches from FOMC members M. Barr and R. Bostic scheduled.
EUR/USD yielded to the Dollar’s advance, retreating to the 1.0850 region and reversing the significant gains made in the previous session. Looking ahead, Germany is set to release its IFO Business Climate report on March 22.
GBP/USD struggled to maintain levels just above 1.2800, ultimately plunging to the mid-1.2600s amid a stronger Dollar and the BoE’s dovish stance. On March 22, Retail Sales will be the focal point in the UK, alongside the Gfk Consumer Confidence print.
USD/JPY extended its rally and once again approached year-to-date highs near 151.80 as investors continued to sell the yen following the BoJ meeting. The domestic calendar on March 22 includes the Inflation Rate and weekly readings from Foreign Bond Investment.
Despite a solid labor market report, AUD/USD relinquished its initial gains, ending the session with modest losses. On March 21, the RBA’s Consumer Inflation Expectations will be closely watched.
WTI crude oil prices edged closer to the significant $80.00 mark per barrel, retracing approximately $3 from recent highs above $83.00.
Gold prices surged to an all-time high above $2,220 per troy ounce but ended the session with minor losses amidst the Dollar’s recovery. Silver followed a similar pattern, declining notably after reaching fresh highs near $25.80 per ounce.
