Markets are attempting to stabilize after Wednesday’s fall, while the dollar is taking a breather from gains. Optimism about an EU-UK solution to the vaccine row is countered by a blockage to global trade in the Suez Canal. Investors await news on US infrastructure spending plans, while jobless claims and final GDP are eyed.
Dollar breather: The greenback has paused its gains, with EUR/USD holding above 1.18 and GBP/USD consolidating below 1.37. Jerome Powell, Chairman of the Federal Reserve, reiterated his position that inflation will likely be temporary and that the recovery has a long way to run. Ten-year Treasury yields have found their feet above 1.60%.
US jobless claims are set to show a drop in the week ending March 19 and the final US Gross Domestic Product for the fourth quarter is predicted to confirm an annualized growth rate of 4.1%.
Wednesday’s release of Durable Goods Orders statistics for February disappointed with a substantial drop, yet the “deep freeze” storm may have pushed investment lower.
EUR/USD continues trading downwards. Possibly, today the pair may fall to reach 1.1800 and then start a new growth with the target at 1.1877.
After completing the descending structure at 1.3700, GBPUSD is forming a new consolidation range around this level. Today, the pair may expand the range down to 1.3670 and then resume growing with the target at 1.3850.
USD/JPY has completed the correction at 108.98 and may later resume trading within the downtrend with the short-term target at 108.40.
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