Forex Today: No peace at sight, financial turmoil continues

Valeria Bednarik FXStreet

What you need to take care of on Friday, March 11:

Quite a busy day ended with the American Dollar trading mixed across the FX board. It managed to post gains vs its European rivals and the JPY but lower against commodity-linked currencies.

The EUR/USD pair is back below the 1.1000 level, while GBP/USD is barely holding above 1.3100. The AUD/USD pair trades near a daily high of 0.7363, while the USD/CAD hovers around 1.2750.

The fourth round of peace talks between Russia and Ukraine ended abruptly and without an agreement on ceasefire or humanitarian corridors. International sanctions on Russia pile up, but Moscow shows no signs of giving up after fifteen days.

The European Central Bank announced its monetary policy decision. As widely anticipated, rates were left unchanged. However, Lagarde announced a twist in their Asset Purchase Program (APP) that is now set to end in the third quarter of this year. The APP will amount to 40 billion euros in April, 30 billion euros in May and 20 billion euros in June.

President Christine Lagarde noted that Moscow’s invasion of Ukraine is a watershed for Europe and is now a new downward risk, repeating they “will do everything within our mandate to pursue price stability.” The central bank downwardly revised its growth forecasts.

The US released the February Consumer Price Index, which printed at 7.9% YoY as expected, still its highest in 40 years. The headline put pressure on Wall Street, already weighed by geopolitical turmoil. US indexes remain in the red heading into the close but managed to trim half of their early losses.

The yield of the US 10-year Treasury note hit 2.02% and heads into the close at around 2.0%.

Gold finishes the day unchanged, trading a few bucks below the $2,000 threshold. Crude oil prices eased, with WTI now changing hands at around $106.20 a barrel. Oil decline was attributed to comments from Russian President Vladimir Putin, who said that Moscow would keep its energy-related commitments.

Dogecoin price undergoes setback as Moscow ignores Ukraine’s peace offer

Like this article? Help us with some feedback by answering this survey:

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.

AUD/USD eyes 100-SMA hurdle near 0.7035 as hawkish RBA counters firmer USD

AUD/USD regains positive traction on Tuesday and climbs to 0.7030 during the Asian session, reversing the previous day's corrective slide from a one-month high as hawkish RBA rate expectations continue to support the Aussie. Spot prices, however, remain below the 100-day SMA pivotal resistance amid a firmer US Dollar as traders brace for Australia’s September CPI report on Wednesday ahead of the Fed rate decision.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold holds above $4,000 as traders brace for Fed interest rate decision

Gold edges higher during American trading hours on Tuesday after trading in negative territory earlier in the day. A slight decline in Oil prices offers some relief, although a firmer USD limits the upside as traders await the Fed’s monetary policy announcement on Wednesday.

Crypto Today: Bitcoin, Ethereum and XRP on edge as sell-side pressure intensifies

Cryptocurrency prices are broadly correcting on Tuesday, led by Bitcoin (BTC) edging lower below the pivotal $80,000 level. Ethereum (ETH) mirrors Bitcoin’s neutral-to-bearish outlook, while Ripple (XRP) hovers around $1.30.

Experts agree: Fed policy outlook and geopolitical tensions keep US Dollar bid

The US Dollar Index rallies 0.6% in three days and hits fresh two-week highs above 102.00. Investors return to the US Dollar as markets brace for a hawkish hold by the Fed on Wednesday. Waning hopes of any immediate US-Iran peace deal have provided additional support to the safe-haven USD.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.