FX MARKET REPORT 22.03.2021

FX MARKET REPORT 22.03.2021

FX MARKET REPORT 22.03.2021

Daily Commentary
FX MARKET REPORT 22.03.2021
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FX MARKET REPORT 22.03.2021

GBP/USD: Britain’s covid vaccine achievements to allow the pound to extend its recovery. EUR/USD briefly tests lows in the 1.1870 region. The bid tone around the dollar remains well and sound. EMU’s Current Account results, ECB-speak next on tap. Dollar Index was up 0.1% at 92.047, helped by its safe haven status. USD/JPY was down 0.2% at 108.70, GBP/USD fell 0.1% to 1.3853, while the risk-sensitive AUD/USD dropped 0.2% to 0.7727. A lot of the market’s focus will be on the Turkish lira, with USD/TRY up 8.4% at 7.8226 following Erdogan’s shock weekend decision to dismiss central bank governor Naci Agbal after just four months in the role. The decision came only days after he announced a sharp rise in interest rates to combat rising inflation. Erdogan subsequently appointed Sahap Kavcioglu, a ruling party lawmaker who has argued for lower interest rates, raising fears he will reverse the orthodox moves taken to battle inflation, which could lead to prolonged market volatility. In his short time on the job, Agbal had raised rates by 875 basis points to 19% and regained some policy credibility prompting the lira to rally from the depths.

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GBP/USD: Britain’s covid vaccine achievements to allow the pound to extend its recovery. EUR/USD briefly tests lows in the 1.1870 region. The bid tone around the dollar remains well and sound. EMU’s Current Account results, ECB-speak next on tap. Dollar Index was up 0.1% at 92.047, helped by its safe haven status. USD/JPY was down…

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