USD 
EUR 
GBP 
JPY
It was a wild ride today, with the USD/JPY pair reaching a nearly 20-month high above 160.00 earlier in the day, only to retreat and trade around 159.60 later on. This move lower follows renewed tensions, which was pretty wild. If you were watching EUR/USD, you'd have noticed it extending its losses, slipping back below the 1.1500 psychological mark as a broadly stronger US Dollar kept the Euro under pressure. The pair traded at 1.1468 at the close, which wasn't a huge surprise given the overall market sentiment.
Dollar Dominance
And honestly, it wasn't just the Euro that was feeling the pressure - the New Zealand Dollar didn't fare much better, with the NZD/JPY pair closing at 91.2381, which is basically flat. But what's interesting is that the NZD/GBP pair also closed at 0.4333, which is also unchanged. It's like the market is waiting for something to happen, but isn't quite sure what that is yet. According to FXStreet, Societe Generale economists expect Euro area headline inflation to rise sharply in March, driven by higher energy costs, while core inflation eases slightly. This could be a factor in the Euro's weakness, but it's hard to say for sure.
But back to the USD/JPY pair - it's clear that the Japanese Yen is still under a lot of pressure, and Scotiabank strategists Shaun Osborne and Eric Theoret reported that the Japanese Yen opened very weak, with USD/JPY spiking near 160.50 before stabilizing after fresh warnings of potential “bold action” from the BOJ. This is something to keep an eye on, as it could have big implications for the market. And with the Dallas Fed Manufacturing Index coming out later today, we could see some more volatility in the markets. FXStreet pointed out that the Nasdaq index was chopping up and down during the Powell speech, reflecting indecision after last week’s sharp selloff.
You'd think that with all this going on, we'd see some bigger moves in the market, but so far, it's been pretty muted. The NZD/EUR pair closed at 0.4987, which is also unchanged. But don't get too comfortable - with all the economic events coming up, things could change quickly. And with the Fed's two objectives still at odds, according to Chairman Jerome Powell, it's hard to predict what's coming next. One thing's for sure, though - it's going to be an interesting week.
Dollar Dominance
And honestly, it wasn't just the Euro that was feeling the pressure - the New Zealand Dollar didn't fare much better, with the NZD/JPY pair closing at 91.2381, which is basically flat. But what's interesting is that the NZD/GBP pair also closed at 0.4333, which is also unchanged. It's like the market is waiting for something to happen, but isn't quite sure what that is yet. According to FXStreet, Societe Generale economists expect Euro area headline inflation to rise sharply in March, driven by higher energy costs, while core inflation eases slightly. This could be a factor in the Euro's weakness, but it's hard to say for sure.
But back to the USD/JPY pair - it's clear that the Japanese Yen is still under a lot of pressure, and Scotiabank strategists Shaun Osborne and Eric Theoret reported that the Japanese Yen opened very weak, with USD/JPY spiking near 160.50 before stabilizing after fresh warnings of potential “bold action” from the BOJ. This is something to keep an eye on, as it could have big implications for the market. And with the Dallas Fed Manufacturing Index coming out later today, we could see some more volatility in the markets. FXStreet pointed out that the Nasdaq index was chopping up and down during the Powell speech, reflecting indecision after last week’s sharp selloff.
You'd think that with all this going on, we'd see some bigger moves in the market, but so far, it's been pretty muted. The NZD/EUR pair closed at 0.4987, which is also unchanged. But don't get too comfortable - with all the economic events coming up, things could change quickly. And with the Fed's two objectives still at odds, according to Chairman Jerome Powell, it's hard to predict what's coming next. One thing's for sure, though - it's going to be an interesting week.