Dollar declines for second straight session

Economies.com
2 weeks ago

Dollar declined in European trade against a basket of major rivals for the second day, as demand slows down on the greenback with calm spreading in the markets regarding the banking crisis. 

 

Authorities and banks moved to reduce pressure on the financial sector, in turn improving risk appetite and reducing demand on havens and increasing demand on higher risk currencies such as euro and the pound.

 

The Index

 

The dollar index fell 0.5% to 103.90, with a session-high at 104.45, after losing 0.3% yesterday, the first loss in three days as demand slowed down with the Credit Suisse crisis averted. 

 

Fears Quenched 

 

Concerns about Credit Suisse calmed down following the Swiss National Bank's assurances of providing needed liquidity to Switzerland's second bank, which announced it'll borrow 50 billion francs from the central bank.

 

Swiss media said that the government held an emergency meeting to discuss the issue in order to avoid a banking crisis in the country.

 

In the US, major banks deposited nearly $30 billion in the First Republic bank to avoid a similar crisis to the one that hit Silicon Valley Bank and Signature bank.

 

US Rates

 

Current pricing for a 0.25% rate hike in the US in March stands at 79%, with pricing for no change in rates standing at 21%.

 

Consumer Confidence 

 

Investors await important US data on consumer confidence from the University of Michigan, with its index expected at 66.9 in March, barely down from 67.0 in February.

Forex and Currency News

Forex News

Forex

US unemployment claims rise past estimates
2 days ago
US unemployment claims rose to 198 thousand in the week ending March 25, above estimates of 196 ...
Forex News

Forex

US economy grows less than expected in fourth quarter
2 days ago
US GDP grew 2.6% y/y in the fourth quarter of 2022, down from 3.2% in the third quarter, and ...
Forex News

Forex

Dollar plumbs week lows ahead of US growth data
2 days ago
Dollar fell in European trade against a basket of major rivals with markets considering whether the ...

Forex Technical Analysis

GBP USD Analysis

Forex

Midday update for the GBPUSD 31-03-2023
1 day ago
The GBPUSD pair tested 1.2400 barrier and bounced bearishly to trade at the intraday bullish ...
EUR USD Analysis

Forex

Midday update for the EURUSD 31-03-2023
1 day ago
The EURUSD pair shows some slight bearish bias now, affected by stochastic negativity, waiting to ...
Technical Analysis

Forex

The GBPCAD keeps the positivity – Analysis – 31-3-2023
1 day ago
The GBPCAD pair formed bullish channel recently, to notice recording many gains by touching 1.6700 ...