Forex Today: Dollar set to extend gains

FXStreet Team FXStreet

What you need to know on Monday, March 22:

The American dollar finished the week with modest gains against most major rivals, up on Friday amid persistent yields’ strength. The yield on the benchmark 10-year Treasury note settled at 1.73%, near the multi-month peak of 1.75% achieved earlier in the week.

The EUR/USD pair hovers around 1.1900, while GBP/USD is around 1.3860, both suffering from coronavirus jitters. Several European countries have seen increases in the number of new contagions, and new restrictive measures have been announced as the EU struggles with vaccine shortage. The UK progresses in vaccine rollout, but Prime Minister Boris Johnson plans to extend the country’s lockdown law until next October. The Coronavirus Act emergency legislation will be discussed in the House of Commons on Thursday.

Commodity-related currencies were pressured by the poor performance of equities, although their declines against the greenback were limited. Gold surged ahead of the weekly close, settling at $1,744 a troy ounce, while crude oil prices also advanced marginally at the end of the week.

US Federal Reserve Chief Jerome Powell will testify before Congress on Tuesday and Wednesday, although after the latest Fed’s announcement, it seems unlikely that his words will have an impact on currencies.

Ethereum Price Prediction: ETH eyes a 40% bull rally

Author

FXStreet Team

FXStreet

EUR/USD keeps the bearish bias near 1.1650

EUR/USD comes under renewed pressure on turnaround Tuesday, giving back part of its post-CPI bounce and easing toward the 1.1650 area as US markets draw to a close. In the background, the US Dollar is edging higher as markets continue to digest December’s inflation data and gear up for Wednesday’s Retail Sales and Producer Prices.

GBP/USD attempts some consolidation around 1.3430

GBP/USD trades on the back foot at the end of the NA session on Tuesday, hovering around the 1.3430 zone against the backdrop of the resumption of the buying interest in the Greenback. Moving forward, the BoE’s Taylor and Ramsden are due to speak on Wednesday.

Gold begins a new record run

Gold shrugs off early gains to fresh record highs above $4,630 per ounce on Tuesday, and returns to the vicinity of the $4,600 region amid further improvement in the US Dollar and declining US Treasury yields following the release of US CPI data.

Privacy coins set to take the lead in 2026 as regulation accelerates demand for on-chain anonymity

The segment of privacy coins outperforms the broader cryptocurrency market, with a roughly 290% rise in 2025. The rising user count on the cryptocurrency tumbler Tornado Cash amid regulatory pushes, such as the 2025 GENIUS Act, reflects a surge in demand for privacy.

More pressure on the Federal Reserve emerges

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank.

XRP consolidates above $2.00 as on-chain and derivatives activity decline

Ripple (XRP) is trading sideways above support at $2.00 at the time of writing on Tuesday. Recovery has remained elusive despite steady inflows into spot Exchange Traded Funds (ETFs), which have cumulatively attracted $1.23 billion.