Today's forex news: US stocks rallied while the dollar weakens
Today's forex news: US stocks rallied while the dollar weakens
EUR/USD ⬆️
GBP/USD ⬆️
AUD/USD ⬆️
USD/CAD ⬇️
XAU ⬇️
WTI ⬇️
After the hawkish, interest-hiking comments made by the Chairman of the Federal Reserve (the Fed) yesterday (22 March), the US dollar has been weakened against other major currencies, while the US stock market has rallied unexpectedly to a 5-week high. The risk-on mood among investors have shifted their capital to stocks, lowering gold price to 158.85 per ounce. As the Fed's Chair will give a speech later today (23 March), investors will keep a close eye for further pointers to the Fed's next course of action.
The British Pound gained momentum and reached a near two-week high around the 1.3200 level, with a closing price of 1.3263 against the dollar, although investors do not expect an extended rising trend due to a weaker UK economy and higher UK domestic inflation.
The latest comments from the Governor of Reserve Bank of Australia (RBA) were less hawkish than the Fed, as he states “(The RBA) will not respond until there is evidence of pervasive price pressures.” The dovish comment relieved market worries for another round of interest rate hike, and strengthened the Aussie currency against the greenback, with a closing price of 0.7467.
However, the Euro could not take advantage of the broad dollar’s weakness. The EUR/USD pair rose moderately and settled, closing at 1.1027. Meanwhile, the EU remains undecided whether to initiate the embargo against Russian-imported crude oil. The breathing space allowed crude oil’s closing price to return to 109.47 per barrel, and strengthened the dollar against the Canadian currency at 1.2568, thanks to lower commodity prices.
Though the US stock market rode the bullish trend, the United States 10-Year Bond yield also increased to 2.377%.
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EUR/USD ⬆️
GBP/USD ⬆️
AUD/USD ⬆️
USD/CAD ⬇️
XAU ⬇️
WTI ⬇️
After the hawkish, interest-hiking comments made by the Chairman of the Federal Reserve (the Fed) yesterday (22 March), the US dollar has been weakened against other major currencies, while the US stock market has rallied unexpectedly to a 5-week high. The risk-on mood among investors have shifted their capital to stocks, lowering gold price to 158.85 per ounce. As the Fed's Chair will give a speech later today (23 March), investors will keep a close eye for further pointers to the Fed's next course of action.
The British Pound gained momentum and reached a near two-week high around the 1.3200 level, with a closing price of 1.3263 against the dollar, although investors do not expect an extended rising trend due to a weaker UK economy and higher UK domestic inflation.
The latest comments from the Governor of Reserve Bank of Australia (RBA) were less hawkish than the Fed, as he states “(The RBA) will not respond until there is evidence of pervasive price pressures.” The dovish comment relieved market worries for another round of interest rate hike, and strengthened the Aussie currency against the greenback, with a closing price of 0.7467.
However, the Euro could not take advantage of the broad dollar’s weakness. The EUR/USD pair rose moderately and settled, closing at 1.1027. Meanwhile, the EU remains undecided whether to initiate the embargo against Russian-imported crude oil. The breathing space allowed crude oil’s closing price to return to 109.47 per barrel, and strengthened the dollar against the Canadian currency at 1.2568, thanks to lower commodity prices.
Though the US stock market rode the bullish trend, the United States 10-Year Bond yield also increased to 2.377%.
📱 Get instant market news delivered to you in real time on Mitrade