Forex Today: Dollar keeps strengthening

Valeria Bednarik FXStreet

What you need to take care of on Thursday, April 7:

The American dollar retained its strength on Wednesday, as the focus remained on geopolitical tensions and aggressive central banks.

US President Joe Biden announced an executive order which will ban new investments in Russia. European leaders, on the other hand, were unable to reach an agreement on banning Russian coal, although they said it was due to a technical issue and that they will discuss it again on Thursday. Meanwhile, European Commission President Ursula von der Leyen said that new sanctions against the Kremlin would not be the last.

The US Federal Reserve unveiled the Minutes of its latest meeting, which reminded market players of the aggressive stance of the central bank. Policymakers are determined to move the monetary policy to neutral “expeditiously.” Additionally, the statement reads: “participants also noted that depending on economic and financial developments, a move to a tighter policy stance could be warranted.”

The EUR/USD pair trades below 1.0900, while GBP/USD hovers around 1.3070. Commodity-linked currencies are under strong selling pressure, with AUD/USD changing hands at 0.7510 and USD/CAD trading at 1.2530.

Crude oil prices were sharply down, undermined by the soft tone of Wall Street, now at around $97.00 a barrel. Global indexes closed in the red, with US ones further weighed by FOMC Meeting Minutes.

Gold price held within familiar levels, now trading at around $1,924 a troy ounce.

Solana price could double after entering buy zone

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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