Forex Today: Powell weighs on the Dollar… here comes the ECB
Further weakness hurt the Greenback amidst rising prospects of a rate cut by the Fed in June, a view that was propped up by further easing of the US labour market. In the meantime, further gains lifted Gold to a new record high, and EUR/USD broke above 1.0900.
Here is what you need to know on Thursday, March 7:
The greenback dropped to multi-week lows and dragged the USD Index (DXY) to the low 103.00s following disappointing data and Chair Powell’s first testimony. On March 7, weekly Initial Jobless Claims are due, seconded by the second testimony by Chief Powell and Balance Trade figures. In addition, the Fed’s L. Mester is also due to speak.
EUR/USD advanced north of 1.0900 the figure to print fresh six-week tops on the back of a persistent USD sell-off. The ECB meets on March 7, followed by the usual press conference by President C. Lagarde.
GBP/USD managed to break above the 1.2700 barrier and chart fresh tops, always amidst increasing weakness in the US Dollar and encouraging news from the Spring Budget.
USD/JPY retreated to the boundaries of the 149.00 neighbourhood, or three-week lows, amidst the extra decline in US yields and the intense move lower in the Greenback. On March 7, weekly Foreign Bond Investment figures are due, seconded by the speech of BoJ Nakagawa.
In line with the rest of the risk-associated assets, AUD/USD rose markedly and approached the key 0.6600 hurdle. In the Australian docket, Balance of Trade results, Home Loans, and Investment Lending for Homes readings are next on March 7.
WTI printed decent gains and briefly surpassed the key $80.00 mark per barrel on the back of a smaller-than-expected weekly build of US crude oil inventories and rising bets of a Fed’s rate cut later in the year.
Another positive session saw Gold prices reach an all-time high of around $2,150 per troy ounce. Silver also rose sharply and tested the $24.30 area per ounce for the first time since late December.