Will there be a shift in the balance of power between the euro and the U.S. dollar?
23.03.2021
- The U.S. dollar is trading sideways
- Remarks by Bank of England Governor Bailey
Yesterday, the stock market remained firm, with stocks rising, interest rates falling, and commodity prices declining. Crude oil, which had temporarily risen to $68, fell below the $60 mark before rebounding, but faced resistance at higher levels and has since resumed its downward trend.
Furthermore, in response to China’s serious human rights violations in the Xinjiang Uyghur Autonomous Region, the EU imposed sanctions on Chinese government officials—including travel bans and asset freezes—for the first time in about 30 years. Following this news, the Swiss franc, considered a safe-haven currency, rose to around 117.9 against the yen.In contrast, the Australian and New Zealand dollars—currencies of resource-rich nations in Oceania—have fallen sharply. The New Zealand dollar is currently trading around 77.1 against the yen.
Today, at 4:00 PM, the UKunemployment rate at 4:00 PM, remarks by MPC member Holden at 5:40 PM, remarks by BOE Deputy Governor Canrif at 6:55 PM, remarks by BOE Governor Bailey at 8:50 PM, remarks by Fed Chair Powell and U.S. Treasury Secretary Yellen at 1:00 AM, and a U.S. 2-year Treasury auction at 2:00 AM.We will closely monitor how these remarks from key U.S. officials affect currency strength and weakness.
