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Forex today: Dollar strengthens across the board

3/29/2018, 10:12:46 AMBasics of Trading
Forex today: Dollar strengthens across the board

In Forex today the US Dollar was the big winner, clearing ground against its competitors, most notably the Euro, Sterling, and Yen.

Flight flows sputtered out in Wednesday's trading, and the Greenback was able to capitalize, reaching higher ground against the wider currency bloc, though gains were limited against the Aussie and the Loonie, the two biggest commodity-backed currencies.

Major indices middled but ultimately closed slightly down, led by still-declining tech stocks as the 'social bubble' continues to take a dive following Facebook's mishandling of user data. Oil and gold both suffered at the hands of the strengthening Dollar, with gold ending the day at 1,326.30 and WTI managing to end the day relatively flat at 64.67.

USD/JPY fights back to 107.00

The Yen gave up ground in a big way, extending the pair's pullback from the fresh low near 104.60 to trade back into the 107.00 handle, though with risk aversion becoming a staple in the Asia trading session, Thursday's action could see the correction evaporate. Japan's Tokyo CPI figures drop at 23:30 GMT today, and the headline Core CPI is expected to print at 0.9%, in line with the previous reading.

The Euro pared recent gains back into the 34-day EMA at the 1.2300 handle, and the Sterling faded in Wednesday's action as well, though remains within reach of January's highs near the 1.4300 major level. Thursday represents a healthy dose of mixed economic data for the European theater, with the notable entrants being German Unemployment figures at 08:00 GMT (forecast: 5.3 percent, prev. 5.4 percent), followed by the UK's final GDP figures for the 4th quarter 2017 (forecast: 0.4 percent, prev. 0.4 percent). After that will be Germany's preliminary CPI figures for March, and the headline figure is anticipated at a healthy 1.6 percent versus the previous reading of 1.2 percent.

The Aussie and the Kiwi both took a beating from the Greenback, but the Aussie managed to fair better of the two, possibly because the AUD has already been taking a good hammering, and the AUD/USD heads into Thursday's action trading near 3-month lows at 0.7650, while the Kiwi sits on the lower end of March's action near the 0.7200 handle. The macro calendar for the Antipodeans has dried up heading into Easter weekend, and action is going to be based purely on market sentiment.