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21.03.2024 Market Report


EUR/USD is well bid above 1.0900 in the European morning on Thursday. The pair is consolidating the upside, fuelled by sustained US Dollar weakness in the aftermath of a dovish Fed policy decision. The focus shifts to the Eurozone and the US PMI data for fresh directives. 


GBP/USD is trading close to 1.2800, holding positive momentum in early Europe on Thursday. A broadly weaker US Dollar, following the Fed policy decision, provides some support to the pair ahead of the key UK PMI data and the BoE policy announcements. 


USD/JPY took a quick dive into 151.00 after the Federal Reserve (Fed) held its main reference rate at 5.5% as markets had broadly predicted. Risk-hungry investors are shrugging off higher-than-previous growth expectations and interest rate forecasts from the Federal Open Market Committee (FOMC). According to the FOMC, US Gross Domestic Product (GDP) growth through 2024 is going to be slightly higher than forecast, and year-end interest rates are likely to be higher than previously expected.


The Australian Dollar soared 0.83% against the US Dollar on Wednesday as the Federal Reserve held rates steady while maintaining their monetary policy outlook from last year, with 75 basis points (bps) of rate cuts in 2024. As the Asian session begins, the pair trades at 0.6595, up 0.14%.


The NZD/USD pair trades on a stronger note below the 0.6100 mark during the early Asian session on Thursday. The decline of the US Dollar (USD) after the Federal Reserve (Fed) left its interest rates unchanged and Fed Chair Jerome Powell delivered a dovish message to provide some support to the pair. NZD/USD currently trades around 0.6090, gaining 0.15% on the day. 


USD/CAD moves downward to near 1.3470 during the Asian session on Thursday, extending its losses for the second successive day. The Canadian Dollar (CAD) likely found support from rising Crude oil prices.


USD/CHF climbs towards 0.8880 during the Asian hours on Thursday.


Oil prices rebounded on Thursday as U.S. crude and gasoline stock drawdowns lent support despite signs that the U.S. Federal Reserve may keep interest rates higher for longer.


Gold price is correcting from a fresh all-time high of $2,223 reached in early Asian trading on Thursday, although defends the $2,200 threshold amid sustained weakness in the US Dollar and the US Treasury bond yields. Markets digest the dovish US Federal Reserve no-interest rate change decision on Wednesday.

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