Forex Today: On hold ahead of Fed’s day
|What you need to know on Wednesday, March 17:
The dollar weakened against most of its major rivals but the EUR, as yields eased from their recent highs, while US data was much worse than anticipated.
The shared currency came under selling pressure after the European Medicines Agency continues investigating AstraZeneca’s vaccine possible side effects, making no decision on whether to resume its application. However, a conclusion will be released next Thursday, and authorities repeated that the benefits of the vaccine outweigh the risks. EUR/USD trades around 1.1900 after falling to 1.1881.
GBP/USD fell to 1.3808 following comments from BOE’s Governor Andrew Bailey. He said that the central bank is committed to buying bonds at an elevated pace, sounding cautious about the economic recovery. His words are relevant ahead of the BOE’s monetary policy meeting that will take place next Thursday. The pair bounced back and settled just below 1.3900.
The Canadian dollar ignored the fall in oil prices and surged against its American rival to fresh 2021 highs. The black gold slid amid the dismal market’s mood, bouncing just modestly during the American afternoon. WTI settled around $ 64.60 a barrel.
The USD/JPY pair edged marginally lower, holding around the 109.00 figure. US Treasury yields weakened at the beginning of the day but bounced back during US trading hours amid the sour tone of equities. Wall Street closed in the red.
Gold prices continue to consolidate, with spot finishing the day at $1,371 a troy ounce.
The focus shifts now to the US Federal Reserve, which will announce its latest decision on monetary policy this Wednesday.
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