Todays Free Signal 15 03 2021 Fed meeting hogs

HONG KONG (Reuters) – The yen remained under pressure on Tuesday and the euro edged higher as talks between Russian and Ukrainian negotiators continued, but moves were more muted than in recent days as the market’s attention turned to this week’s Fed meeting.

Cadjpy downtrend by fxpremiere on TradingView.com

The U.S. Federal Reserve is set to raise rates for the first time since the pandemic at its meeting which concludes Wednesday, with traders looking for indications about the pace of future rate hikes.

Markets anticipate a 25 basis point rise at this meeting, according to the CME’s Fedwatch tool, but pricing has risen to indicate a 70% chance of a larger 50 basis point hike at its subsequent meeting in May, due to concerns about inflation.

“We think the statement and Chair Powell’s press conference after the meeting will be influential in terms of market pricing for a 50 basis point rise in May and beyond, and that will impact the U.S. dollar intraday,” said Carol Kong, an FX strategist at Commonwealth Bank of Australia (OTC:CMWAY) (CBA).

The dollar index, which measures the greenback against six major peers was at 98.881, down 0.23% on the day mainly due to losses against the euro, but still in sight of the 99.415 touched a week ago, its highest level since May 2020.

The yen fell as low as 118.44 per dollar on Tuesday, a new five-year low, as its recent slide showed no signs of stopping.

The contrast between rising benchmark rates in the United States and low rates in Japan is becoming ever more apparent as the Fed begins to tighten, particularly with both the Fed and the Bank of Japan meeting this week.

Todays Free Signal 15 03 2021 Fed meeting hogs Dollar dips ahead of Fed meeting

Analysts at Bank of America (NYSE:BAC) raised their forecast for dollar-yen to 123 by the third quarter of this year.

The return of risk sentiment to markets, partly on the back of hints of a negotiated end to the war in Ukraine, has also taken away some of the support for the safe-haven Japanese currency. Dollar Edges Lower amid Fed Meeting

Russian and Ukrainian delegations held a fourth round of talks on Monday but no new progress was announced. Discussions were due to resume on Tuesday, offering a boost to the euro, which has been badly bruised by the expected economic damage caused by the conflict. Dollar Weakens Ahead of Fed Meeting

The European common currency was up 0.36% to $1.0979, with analysts also pointing to falling oil prices as a factor given Europe’s current reliance on Russian oil and gas.

Traders were also watching the Chinese yuan which touched a near three-month low, as a resurgence in COVID-19 cases clouds the country’s economic outlook, while the deepening Ukraine crisis boosts geopolitical risks for Beijing.

The onshore yuan fell to 6.3880 per dollar, the weakest since Dec. 10, 2021, while the offshore yuan touched a near five-month low of 6.4097 per dollar.

The Australian dollar was under pressure at $0.7181, having tumbled 1.5% on Monday, hurt by a halt to the surge in commodities prices which sent it higher earlier this month.

CBA’s Kong said the situation in China was also weighing on the Aussie.

Sterling was also beaten down at $1.3042, while in cryptocurrencies, bitcoin was down 2.25% at just under $39,000

Todays Free Signal 15 03 2021 Fed meeting hogs

Forex Signals News

Forex Signals Market News by FxPremiere Group sending out Daily Live Market News and Events for the Capital Markets.

Daily Forex Signals

EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more…

Putin to decide on counter sanctions

These are the three most traded currencies beside the US dollar. Minor pairs have a smaller market share compared to major pairs. Because of this they can exhibit lower market liquidity. Lower market liquidity will mean that a broker will give wider dealing forex spreads.

FX News

Grow your Learning knowledge on the capital markets. URL FxPremiere.com Finance Forex News was Founded in 2010. Since then has grown with over 23,000 live subscribers globally. Subscribe to our Signals and start receiving Forex Day Trading Signals from the very next trade! Forex Signals News Learning Guides below with guide you with every trade you make! We help by referring only the very best forex brokers available in the marketplace. Your in safe hands with our partners. With our free forex learning guides you will be able to educate yourselves with the most up to date forex basics required in order to enter the Capital Markets. FxPremiere.com Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms. CREATE YOUR OWN NFT TODAY!!