The Fed, the whole Fed and nothing but the Fed

Further gains saw the USD Index (DXY) advance to three-week highs past the 104.00 hurdle on Tuesday despite the corrective decline in US yields.

The Federal Reserve interest rate decision, along with the FOMC Economic Projections and Chair Jerome Powell’s press conference, will take centre stage across the pond on Wednesday.

The EURUSD pair added to Monday’s pessimism and dropped to multi-week lows near the 1.0830 region, putting the critical 200-day SMA to the test at the same time.

Also on Wednesday, the ECB’s Christiane Lagarde will speak, and the European Commission will release its flash Consumer Confidence gauge.

The GBPUSD pair reversed the earlier pullback to the 1.2670 zone on Tuesday and reclaimed the area beyond 1.2700 the figure towards the end of the NA session. The UK docket will see the Inflation Rate on March 20.

Yen pressure

USDJPY climbed markedly and traded just pips away from the key 151.00 mark, or 2024 highs, as the selling pressure around the yen picked up strongly following the BoJ rate hike.

AUDUSD extended its leg lower for the fourth session in a row and approached the key support at the 0.6500 neighbourhood in response to the upside bias in the Greenback and the dovish hold from the RBA. On March 20, the RBA’s Consumer Inflation Expectations are due.

Prices of WTI advanced past the $83.00 mark per barrel, or four-month highs, on the back of geopolitics and prospects of stronger demand.

Prices of Gold faded Monday’s small gains and traded with humble losses around the $2,150 zone per troy ounce amidst further advance in the Dollar and lower US yields.

Silver followed suit and dropped for the second session in a row following Friday’s tops near the $25.50 region per ounce.

(Source: OANDA)