Here is what you need to know on Wednesday, March 17:

Markets are cautious ahead of the all-important Federal Reserve decision, despite rising US yields with major pairs clinging to round levels. The EU is getting closer to resuming vaccination with AstraZeneca, gold is back to the higher range and Bitcoin is moving higher.

Calm before the storm: The Federal Reserve is set to leave its policy unchanged but publish closely-watched forecasts for growth, inflation, employment and interest rates. Markets foresee an earlier increase in borrowing costs than the Fed and fear a bump up in inflation.

Federal Reserve Chair Jerome Powell will hold a press conference and will try to balance between acknowledging the vaccine and stimulus-led recovery without raising concerns of overheating and rate hikes. 

See Fed Preview: The Good, the Bad and the Ugly edition, three critical things to watch

Ahead of the Fed, Tuesday's US Retail Sales report for February showed a large drop of 3%, albeit on top of an upward-revised statistic for January. Moreover, the sharp drop was attributed to storms in the southern US.

Currencies: EUR/USD is hovering around 1.19, GBP/USD is trading near 1.39 and USD/JPY is at 109, all experiencing narrowing ranges. Gold is has surpassed $1,730, potentially reflecting speculation that the Fed remains dowvish.

Vaccines: European regulators say that the benefits of using the AstraZeneca jabs outweigh concerns of blood clots that have arisen in recent days. Several leaders also signaled they are ready to lift their suspensions, which may derail the EU's already sluggish vaccination campaign. A decision is due on Thursday.

Data: Final eurozone Consumer Price Index figures for February are set to confirm an increase in headline prices attributed to temporary factors. USD/CAD is trading around 1.24450 ahead of Canada's release of inflation and crude oil inventories data. 

Cryptocurrencies: Bitcoin is trading around $56,000 and Ehtereum under $1,800 as cryptocurrencies also practice some calm after a busy weekend. 

See Treasury yields at 1.6%: something to celebrate or to fear?

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD regained its traction after dropping toward 1.0350 in the early American session and climbed above 1.0400. Trading conditions remain thin on Black Friday and the pair remains on track to end the week in positive territory.

EUR/USD News

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD managed to stage a recovery toward 1.2100 in the American session on Friday and now looks to register gains for the third straight week. The US Dollar struggles to preserve its strength as markets remain subdued on Black Friday. 

GBPUSD News

Gold steadies near $1,750 as US yields retreat

Gold steadies near $1,750 as US yields retreat

Gold price continues to move sideways at around $1,750 heading into the weekend. The benchmark 10-year US Treasury bond yield retreated from the daily high it touched above 3.75% earlier in the day, allowing XAU/USD to erase a portion of its daily losses.

Gold News

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read more

FX next week and yield curve inversions

FX next week and yield curve inversions

Since the Fed's last raise November 3, Fed Funds rate opens and closes at 3.83. The Fed Funds rate once traded freely on its own with highs and lows as any financial instrument. In 2000, Central banks implemented meetings every 6 weeks.

Read more

Forex MAJORS

Cryptocurrencies

Signatures