Market Drivers – US Session, March 20

Mohamed Abdelhamid 21 March, 2024 4:19 am Commodities, Forex Market, Market Update

The US Dollar Index (DXY), which had earlier risen above 104.00, eventually dropped later on Wednesday after FOMC decision, hitting lows of 103.00s. FOMC decision, to keep interest rate unchanged in March, significantly had an impact on market mood including the performance of US stocks as well as gold prices.

Economic Data

The weekly unemployment claims figures as well as updates on the manufacturing and services sector activity (S&P Global Manufacturing and Services PMIs and the Philly Fed Manufacturing Index) are included in today’s US economic data. In addition, data on current home sales, the Conference Board Leading Index, and a speech by FOMC member Michelle Barr will be presented.

Key Developments

Because of the Dollar’s weakening, the Euro gained ground against the USD and rose to multi-day highs above 1.0900. Today’s Purchasing Managers’ Indexes (PMIs) for flash manufacturing and services are anticipated.

Along with the USD, the British Pound (GBP) gained ground and approached the crucial 1.2800 mark. Today’s meeting of the Bank of England (BoE) coincides with the release of the preliminary S&P Global Manufacturing and Services PMI data.

Commodities

WTI oil prices dropped from recent highs, falling below $81.00 a barrel in spite of persistent supply issues and a declining dollar.

Lower US yields and a weaker dollar caused gold prices to soar, reaching $2,180 an ounce once again. The price of silver increased dramatically as well, getting close to $25.60 an ounce, a level last seen in early December.

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AUD/USD advances following FOMC decision