Dollar Reacts to FOMC Meeting and Market Outlook Pre-European Trading

Thursday, 21 March 2024, 08:01

The dollar weakened following the recent FOMC meeting led by Fed Chair Powell, signaling potential rate cuts. This triggered a market reaction, with the currency experiencing fluctuations across major pairs. As markets head into European trading, the dollar is stabilizing against some currencies but remains under pressure, especially against commodity currencies. Key pairs like EUR/USD and USD/JPY are showing moderate movements while commodity currencies like AUD/USD continue to benefit from positive risk sentiment. The upcoming SNB and BOE meetings will further impact the market sentiment.

https://store.livarava.com/9098ab68-e759-11ee-968f-5254a2021b2b.jpe — Dollar Reacts to FOMC Meeting and Market Outlook Pre-European Trading

Dollar Weakens After FOMC Meeting

The dollar sold off after Fed Chair Powell hinted at possible rate cuts, sparking market volatility. The currency showed mixed movements across major pairs.

Market Reactions and Post-FOMC Outlook

The dollar stabilizing pre-European trading
EUR/USD up marginally awaiting PMI data
USD/JPY trading flat after Asian bounce
GBP/USD remains steady after testing resistance

Commodity currencies like AUD/USD are performing well amid positive risk sentiment. Technical levels, such as the 50.0 Fib retracement for AUD/USD and USD/CAD's rejection at 1.3600, are crucial for future market moves.

Upcoming Events and Impact

SNB and BOE meetings expected to influence market sentiment
Continued focus on central bank policies and global economic outlook

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.

Dollar Weakens After FOMC Meeting

Market Reactions and Post-FOMC Outlook

Upcoming Events and Impact

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