Dollar Bulls Gain Momentum as Euro and Pound Face Pressure

Friday, 22 March 2024, 08:40

The dollar strengthened significantly in the European morning trade as the bulls capitalize on recent gains. Major currency pairs like EUR/USD and GBP/USD are facing pressure, with the greenback showing resilience after its post-Fed slump. Both antipodean currencies are down as well, partly influenced by a breakdown in the Chinese yuan.
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Dollar Bulls Gain Momentum as Euro and Pound Face Pressure

Market Overview

It was turnaround Thursday for the dollar yesterday and the bulls are building on that today. The greenback is proving more resilient in trading this week, bouncing back strongly now after its post-Fed slump.

Key Currency Movements

  • EUR/USD: Down to a three-week low of 1.0810, eyeing a break of its 200-day moving average.
  • GBP/USD: Down 0.5% to 1.2588 and threatening a break of its own key daily moving averages.
  • USD/CHF: Up above 0.9000 for the first time in three months.

Looking over to the antipodeans, they are getting hammered as well in trading today. AUD/USD is now down 0.8% to 0.6513 and eyes a test of the 0.6500 mark. And NZD/USD is down 0.6% to near the 0.6000 level on the day. Both the aussie and kiwi are not helped by a breakdown in the Chinese yuan today. USD/CNY has jumped up above crucial resistance at 7.20 since the start of the year. The pair is trading at 7.227 currently. And that is also in part feeding to more dollar strength we're seeing today.


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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