News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Breaking news

Federal Reserve Leaves Interest Rates Unchanged, Maintains Monthly Asset Purchases

Real Time News
  • US Dollar Outlook: DXY Whipsaws as Fed's Powell Stays Evasive The $USD ripped-then-dipped around the Fed announcement and Powell presser as markets digested a nod to goal progress that is not yet substantial. Now what? Link to Analysis - #Forex #Trading
  • RT @LeaderMcConnell: Based on a commitment from Leader Schumer to Senators Portman and Sinema that the Portman-Sinema amendment to be filed…
  • The price of oil defends the advance from the monthly low ($65.01) amid a larger-than-expected decline in US inventories. Get your #crudeoil market update from @DavidJSong here:
  • RT @burgessev: Barring something really surprising, Senate will move forward on bipartisan infrastructure deal shortly. Capito says: "I pla…
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.65% 🇨🇭CHF: 0.49% 🇪🇺EUR: 0.22% 🇦🇺AUD: 0.18% 🇳🇿NZD: -0.00% 🇯🇵JPY: -0.12% View the performance of all markets via
  • GBP/USD pushes higher as UK COVID cases fall, Fed remains highly accommodative $GBPUSD
  • GBP/USD has been lifted by signs that coronavirus cases in the UK are dropping and by suggestions that office attendance is rising.Get your $GBPUSD market update from @MartinSEssex here:
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 1.20% Gold: 0.49% Oil - US Crude: -0.07% View the performance of all markets via
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.75%, while traders in France 40 are at opposite extremes with 69.77%. See the summary chart below and full details and charts on DailyFX:
  • $USD now at two week lows, cutting into secondary support zone 92.19-92.26 $DXY
USD Needs Major Catalyst for Fresh Highs- GBP to Rally on BoE

USD Needs Major Catalyst for Fresh Highs- GBP to Rally on BoE

David Song, Strategist





Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index






Forex_USD_Needs_Major_Catalyst_for_Fresh_Highs-_GBP_to_Rally_on_BoE_body_ScreenShot216.png, USD Needs Major Catalyst for Fresh Highs- GBP to Rally on BoE

Chart - Created Using FXCM Marketscope 2.0

Although the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains 0.31 percent lower from the open, we should see a short-term rebound over the next 24-hours of trading as the 30-minute relative strength index pushes into oversold territory. However, as the dollar fails to maintain the upward trending channel from earlier this month, we may see a move back towards the 10,450 region, and the dollar may continue to consolidate over the remainder of the week as European policy makers pledge to take further steps in restoring investor confidence. Nevertheless, as the economic docket is expected to show wholesale activity in the world’s largest economy picking up during the month of March, a slew of positive developments could increase the appeal of the USD, and the reserve currency may regain its footing going into the following week should the data curb expectations for additional Fed support.

Forex_USD_Needs_Major_Catalyst_for_Fresh_Highs-_GBP_to_Rally_on_BoE_body_ScreenShot217.png, USD Needs Major Catalyst for Fresh Highs- GBP to Rally on BoE

As the FOMC takes note of the ongoing improvements in the world’s largest economy, it seems as though the FOMC will retain its asset purchase program at $85/month, but it sees as though there’s a greater discussion to scale back on quantitative easing as the recovery gradually gathers pace. Indeed, we may see a growing number of Fed officials move away from the highly accommodative policy stance and look to remove the emergency measures as the U.S. gets on a more sustainable path, and we may see the index continue to build a short-term base in May as the relative strength index continues to hold above support (41). In turn, it seems as though we will need a fundamental catalyst to spur a more meaningful run at the 10,600 figure, and we will maintain a bullish forecast for the greenback as the FOMC remains poised to switch gears later this year.

Forex_USD_Needs_Major_Catalyst_for_Fresh_Highs-_GBP_to_Rally_on_BoE_body_ScreenShot218.png, USD Needs Major Catalyst for Fresh Highs- GBP to Rally on BoE

The greenback weakened across the board, led by a 0.76 percent advance in the Euro, while the British Pound gained 0.56 percent ahead of the Bank of England (BoE) interest rate decision as the central bank is widely expected to uphold its current policy in May. Although the BoE Minutes are expected to show another 6-3 split within the Monetary Policy Committee, the quarterly inflation report may increase the appeal of the sterling should the central bank strike an improved outlook for the U.K., and the central bank looks primed to keep the Asset Purchase Program capped at GBP 375B indefinitely as it extends the Funding for Lending Scheme for another 12 months. In turn, the rebound from March (1.4830) may gather pace over the near-term as market participants scale back bets for more quantitative easing.

--- Written by David Song, Currency Analyst

To contact David, e-mail Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Bring the economic calendar to your charts with the DailyFX News App.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.