Forex Today: The Fed, the whole Fed and nothing but the Fed

The Greenback managed to maintain its multi-session constructive bias well and sound and propel the USD Index (DXY) back above 104.00, albeit ephemerally. Sustaining the rally in the Dollar emerged the sharp depreciation of the Japanese yen in the wake of the well-telegraphed rate hike by the BoJ, while it will be all about the Federal Reserve on March 20.

Here is what you need to know on Wednesday, March 20:

Further gains saw the USD Index (DXY) advance to three-week highs past the 104.00 hurdle despite the corrective decline in US yields. The Fed interest rate decision, along with the FOMC Economic Projections and Chair Powell’s press conference, will take centre stage across the pond on March 20.

EUR/USD added to Monday’s pessimism and dropped to multi-week lows near the 1.0830 region, putting the critical 200-day SMA to the test at the same time. On March 20, the ECB’s C. Lagarde will speak, and the European Commission will release its flash Consumer Confidence gauge.

GBP/USD managed to reverse the earlier pullback to the 1.2670 zone and reclaim the area beyond 1.2700 the figure towards the end of the NA session. The UK docket will see the Inflation Rate on March 20.

USD/JPY climbed markedly and traded just pips away from the key 151.00 mark, or 2024 highs, as the selling pressure around the yen picked up strongly following the BoJ rate hike.

AUD/USD extended its leg lower for the fourth session in a row and approached the key support at the 0.6500 neighbourhood in response to the upside bias in the Greenback and the dovish hold from the RBA. On March 20, the RBA’s Consumer Inflation Expectations are due.

Prices of WTI advanced past the $83.00 mark per barrel, or four-month highs, on the back of geopolitics and prospects of stronger demand.

Prices of Gold faded Monday’s small gains and traded with humble losses around the $2,150 zone per troy ounce amidst further advance in the Dollar and lower US yields. Silver prices followed suit and dropped for the second session in a row following Friday’s tops near the $25.50 region per ounce.