What you need to take care of on Friday, March 18:
The American Dollar remained under selling pressure throughout the day, accelerating its slump ahead of the London fix. The greenback was affected by persistent weakness in government bond yields following the hawkish Federal Reserve's announcement on Wednesday.
By the end of the American session, US Secretary of State Antony Blinken said that Russia might be contemplating a chemical-weapons attack, helping the greenback to recover some ground.
The Russian invasion of Ukraine keeps going without progress in peace talks. Financial markets enjoyed some temporal relief on headlines indicating that international bondholders received Russian bond coupon payments due March 16th in dollars. Nevertheless, there's an increased risk to global growth, while the war will only fuel inflationary pressures.
Ukraine and Turkey are working on setting up a meeting between Volodymyr Zelenskyy and Vladimir Putin. US President Joe Biden will talk to his Chinese counterpart Xi-Jinping on Friday to discuss the matter.
The Bank of England hiked the benchmark UK interest rate by 25bps to 0.75% from 0.50%, as had been widely expected, noting that "some further modest tightening might be appropriate in the coming months," a dovish twist that sent GBP/USD to an intraday low of 1.3087. The pair managed to recover some ground and settled at 1.3150.
The EUR/USD pair retreated from an intraday high of 1.1137 and finished the day in the 1.1090 price zone, while USD/CAD plunged to 1.2630 as oil recovered the upside, with WTI ending the day at $103.75 a barrel.
Gold flirted with $1,950 a troy ounce, ending the day at around 1,939. The AUD/USD pair retained most of its intraday gains and trades in the 0.7370 price zone.
The USD/JPY pair consolidated its latest gains, ending the day unchanged at around 118.60.
Like this article? Help us with some feedback by answering this survey:
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.