FX MARKET REPORT 29.03.2021

FX MARKET REPORT 29.03.2021

FX MARKET REPORT 29.03.2021

Daily Commentary
FX MARKET REPORT 29.03.2021
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FX MARKET REPORT 29.03.2021

GBP/USD attracted some dip-buying on Monday and shot to multi-day tops in the last hour. The uptick was led by cross-driven strength stemming from the EUR/GBP and the GBP/JPY. The prevalent USD buying should cap the upside, instead prompt fresh selling at higher levels. EUR/USD has continued to struggle to get close to the 1.1800 level, with gains petering out around the 1.1790 area. Continued concerns about lockdown and the Coivd-19 pandemic in the Eurozone mean that it is unsurprising to EUR struggle. ECB’s de Cos: Vital to maintain accommodative monetary policy. Continued concerns about the lockdown and the trajectory of the pandemic in the Eurozone mean that it is unsurprising to see the euro struggle to gain traction against its US dollar counterpart on Monday. German Chancellor Angela Merkel reportedly does not see the lockdown restrictions in many states as sufficient to contain the third Covid-19 wave and is reportedly threatening to impose federal law to ensure restrictions are tough enough. Meanwhile, high infection rates in most EU countries mean lockdown eases remains a distant prospect for many countries. The dollar index was up 0.1% at 92.865, just below a four-month high of 92.868 reached overnight. USD/JPY was down 0.1% at 109.55, while the risk-sensitive AUD/USD fell 0.2% to 0.7620.

GBP/USD attracted some dip-buying on Monday and shot to multi-day tops in the last hour. The uptick was led by cross-driven strength stemming from the EUR/GBP and the GBP/JPY. The prevalent USD buying should cap the upside, instead prompt fresh selling at higher levels. EUR/USD has continued to struggle to get close to the 1.1800…

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