FX MARKET REPORT 12.03.2021

FX MARKET REPORT 12.03.2021

FX MARKET REPORT 12.03.2021

Daily Commentary
Daily Commentary
FX MARKET REPORT 12.03.2021
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FX MARKET REPORT 12.03.2021

GBP/USD witnessed a turnaround from the 1.4000 mark amid resurgent USD demand. Rallying US bond yields underpinned the USD and exerted some pressure on the major. Mostly softer UK macro data weighed on the sterling and contributed to the selling bias. EUR/USD comes down and tests the 1.19 area on Friday. A drops and test of recent lows near 1.830 is not ruled out. The dollar rose on Friday, recovering its losses from the day before, as a spike in Treasury yields early in the European session triggered a risk-off move in global currency markets, with riskier currencies taking a hit. Market participants have grown wary in recent weeks that there could be a spike in inflation caused by massive fiscal stimulus and pent-up consumer demand when economies reopen from their coronavirus lockdowns. Although soft U.S. CPI data on Wednesday went some way to calm those fears, U.S. Treasuries sold off again on Friday, with the 10-year yield rising above 1.6%. The dollar was up 0.4% at 91.835. But it was still below the high of 92.506 it reached on Tuesday, which was its strongest since November 2020. The Australian dollar – which is seen as a liquid proxy for risk appetite – fell by 0.5% to 0.77457 versus the U.S. dollar. The New Zealand dollar was down around 0.6% against the U.S. dollar. The Norwegian crown lost out to both euro and dollar.

GBP/USD witnessed a turnaround from the 1.4000 mark amid resurgent USD demand. Rallying US bond yields underpinned the USD and exerted some pressure on the major. Mostly softer UK macro data weighed on the sterling and contributed to the selling bias. EUR/USD comes down and tests the 1.19 area on Friday. A drops and test…

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