Market Drivers; US Session, March 27

Amidst minor retreats in risk-linked assets, the US dollar maintained its positive outlook and maintained the consolidating atmosphere near the upper end of its recent range.

As the spot approached the 152.00 level, worries over possible FX intervention surrounding the USD/JPY continued to grow. Additional gains helped to keep the US dollar stronger and drove the USD Index (DXY) up to around 104.50.

Economic Data

The final print of the Michigan Consumer Sentiment survey, pending home sales, the initial jobless claims report, and the final Q4 GDP Growth Rate are all due on March 28.

Amid the weak performance of the commodity complex and additional upside in the US dollar, the AUD/USD pair sharply increased its losses and got close to the crucial 0.6500 zone. The Melbourne Institute’s Inflation Expectations, Retail Sales, Housing Credit, and Private Sector Credit are all expected on March 28.

Currencies

With the pair trading defensively and compounding earlier losses, there is still a chance that the 1.0800 region will be visited again. When Retail Sales and the labour market data for March are released on March 28, Germany will be at the focus of the discussion.

GBP/USD stayed inside a narrow range in the low 1.2600s despite increases in the US dollar and additional downward pressure in the risk-related market. On March 28, the annualised Car Production results, the speech by C. Mann of the BoE, and the final GDP Growth Rate figures are all due.

Within the range of 152.00, USD/JPY reached a new YTD high before dropping back into the red zone. The BoJ Summary of Opinions and the weekly Foreign Bond Investment data are anticipated on March 28 on the domestic calendar.

Commodities

In the context of higher-than-expected US crude oil stocks, geopolitics, and expectations that there won’t be any news at the next OPEC+ meeting on April 3, WTI prices fluctuated between gains and losses.

While silver prices reversed four straight days of losses, gold prices retested the $2,200 zone per troy ounce due to a further reversal in US yields.

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