US Dollar, Euro Price Analysis News
- US Dollar in Demand on Month and Quarter End Rebalancing
- Fed Announces Further Liquidity Measures
- Canadian Dollar Risks Tilted to a Downside
US Dollar: As we run adult to month and entertain end, a US Dollar in on a front feet with portfolio rebalancing approaching to yield support to a greenback. USD direct had been clear during a Tokyo overnight, that in spin saw a mini-flash pile-up in high beta currencies (AUD, NZD) overnight. However, keep in mind that markets can be rather illiquid during a Asian session. As such, concentration will be on a London repair during 4pm for FX volatility.
Federal Reserve Announcement
- The Federal Reserve have announced a proxy repo trickery with unfamiliar executive bank, permitting them to accept USD liquidity by exchanging US treasuries. The logic behind a process is to forestall unfamiliar executive banks aggressively offloading their treasuries and other USD-denominated assets.
EUR: On a behind of a firmer US dollar, a Euro has damaged next a 1.1000. The latest Eurozone acceleration information also adds to a soothing tinge with both a title and core readings descending next consensus. That said, a latest Fed proclamation has seen a Euro rebound off misfortune levels.
CAD: We are starting to see a joining between a attribute of CAD and oil prices with a 1-week association during -0.27 from -0.45. Therefore, with oil prices remaining downbeat we say a bearish disposition on Canadian Dollar, quite opposite a some-more defensive banking such as a Japanese Yen after a Japanese mercantile year end. (Correlation Matrix)
Source: Refinitiv, DailyFX
Economic Calendar (31/03/20)
WHAT’S DRIVING MARKETS TODAY
- “British Pound (GBP) Latest: GBP/USD and FTSE 100 Rally Look Vulnerable” by Nick Cawley, Market Analyst
- “DAX 30, Euro Stoxx 50: Bear Market Rally Leaves Global Markets during Risk of Bull Trap” by Justin McQueen, Market Analyst
- “Gold Price May Need to Digest, though Looks Broadly Bullish” by Paul Robinson, Market Analyst
— Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX