Dollar Nudges Higher with the Fed in Focus

Wednesday, 20 March 2024, 11:58

The dollar is gaining strength as markets await the FOMC meeting. Traders are positioning for a potentially more hawkish stance from the Fed, supported by factors like 10-year Treasury yields holding steady. Currency pairs like USD/JPY, EUR/USD, and GBP/USD are showing movements as the market anticipates the Fed's decision.
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Dollar Nudges Higher with the Fed in Focus

Headlines:

Welcome to Fed day

USD/JPY eyes potential major breakout going into the Fed later

UK February CPI +3.4% vs +3.5% y/y expected

What's priced in for the BOE now after the UK CPI data?

ECB's Lagarde says cannot commit to rate path even after first cut

Germany February PPI -0.4% vs -0.1% m/m expected

Markets:

  • USD leads, JPY lags on the day
  • European equities mixed; S&P 500 futures up 0.1%
  • US 10-year yields down 0.9 bps to 4.288%
  • Gold down 0.2% to $2,154.03
  • WTI crude down 0.9% to $82.02
  • Bitcoin down 0.8% to $63,199

It was a slower session after a busy Tuesday yesterday, as markets are waiting on the FOMC meeting later today. The dollar is keeping firmer as traders brace for a potentially hawkish stance from the Fed. Currency pairs like USD/JPY, EUR/USD, and GBP/USD show movements ahead of the meeting.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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