Today's forex news: US to shrink balance sheet, strengthens USD
Today's forex news: US to shrink balance sheet, strengthens the US dollar
EUR/USD ⬇️
GBP/USD ⬇️
AUD/USD ⬇️
USD/CAD ⬆️
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WTI ⬇️
As the Federal Reserve (The Fed) Governor Brainard said yesterday (5 April) the US has to continue its effort to slow down inflation and shrink its balance sheet, the US dollar has strengthened against other major currencies, with oil and gold prices also dropping as aggressive monetary policy tightening loomed over the market. Later today (6 April), the Fed will release minutes of its March meeting to reveal further information on its latest plans.
One of the Fed’s primary objectives is to lower living costs of low-income US households, Brainard believed further interest rate hikes are required to curb inflation rate, i.e. lower goods prices and living costs. As a result, the EUR/USD pair continued its fall to 1.0903, GBP/USD took a sharp turn to 1.3068.
Meanwhile, The Reserve Bank of Australia (RBA) had tightening expectations of its own, though it fell short in the face of more hawkish comments from its US counterpart, AUD/USD retreated from a high of 0.7650, to around 0.7570.
In the light of increasing reports of civilian casualties in Ukraine, the US, the UK and EU have proposed new rounds of sanctions towards Russia, namely in crude oil and coal imports. However, the news is also offset by a strong US dollar, crude oil prices were volatile and closed at 101.96 per barrel.
Alternatives to the US dollar also suffered, gold prices decreased to 1,927.5 as United States 10-Year Bond Yield increased to 2.554.
EUR/USD ⬇️
GBP/USD ⬇️
AUD/USD ⬇️
USD/CAD ⬆️
XAU ⬇️
WTI ⬇️
As the Federal Reserve (The Fed) Governor Brainard said yesterday (5 April) the US has to continue its effort to slow down inflation and shrink its balance sheet, the US dollar has strengthened against other major currencies, with oil and gold prices also dropping as aggressive monetary policy tightening loomed over the market. Later today (6 April), the Fed will release minutes of its March meeting to reveal further information on its latest plans.
One of the Fed’s primary objectives is to lower living costs of low-income US households, Brainard believed further interest rate hikes are required to curb inflation rate, i.e. lower goods prices and living costs. As a result, the EUR/USD pair continued its fall to 1.0903, GBP/USD took a sharp turn to 1.3068.
Meanwhile, The Reserve Bank of Australia (RBA) had tightening expectations of its own, though it fell short in the face of more hawkish comments from its US counterpart, AUD/USD retreated from a high of 0.7650, to around 0.7570.
In the light of increasing reports of civilian casualties in Ukraine, the US, the UK and EU have proposed new rounds of sanctions towards Russia, namely in crude oil and coal imports. However, the news is also offset by a strong US dollar, crude oil prices were volatile and closed at 101.96 per barrel.
Alternatives to the US dollar also suffered, gold prices decreased to 1,927.5 as United States 10-Year Bond Yield increased to 2.554.