U.S. Dollar Higher Before Fed Statement
March 16 2021 - 11:59PM
RTTF2
The U.S. dollar appreciated against its key counterparts in the
Asian session on Wednesday, as investors awaited the outcome of the
Federal Reserve's two-day monetary policy meeting due later in the
day.
The Fed will conclude its March meeting at 2:00 pm ET.
The central bank is widely expected to leave interest rates
unchanged, but traders will be paying close attention to any
changes in the accompanying statement.
Market participants are focused on the Fed's outlook for rates
and the economy amid improving economic situation.
All eyes are on Powell's comments regarding the central bank's
plans to address rising yields in the future.
Traders also await U.S. reports on housing starts and building
permits for more direction.
The greenback gained to 109.21 against the yen and 0.9263
against the franc, off its early lows of 108.96 and 0.9243,
respectively. The greenback is seen finding resistance around
112.00 against the yen and 0.94 against the franc.
The greenback rebounded to 0.7724 against the aussie, 0.7173
against the kiwi and 1.2459 against the loonie, from its prior lows
of 0.7747 and 0.7195 and more than a 3-year low of 1.2434,
respectively. If the greenback rises further, it may find
resistance around 0.75 against the aussie, 0.68 against the kiwi
and 1.27 against the loonie.
The greenback recovered to 1.1896 against the euro, from a low
of 1.1908 seen in earlier deals. On the upside, 1.16 is seen as the
next possible resistance for the greenback.
In contrast, the greenback fell to a 2-day low of 1.3922 against
the pound, compared to Tuesday's close of 1.3891. The currency is
poised to challenge support around the 1.41 mark.
Looking ahead, Eurozone CPI for February and construction output
for January are scheduled for release in the European session.
Canada CPI and U.S. housing starts and building permits, all for
February, are due out in the New York session.
At 2:00 pm ET, the Fed announces its decision on interest rate.
Economists widely expect the federal funds rate to be kept at 0 -
0.25 percent.
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