Home Daily Commentaries USD remains steady near 7 week highs

USD remains steady near 7 week highs

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Wednesday 3 April, 2024

Daily Currency Update

The US Dollar is maintaining its stability, currently hovering near its seven-week high. The market is anxiously waiting for comments from the Federal Reserve Chair, Jerome Powell, regarding the current state of the US economy, as well as the Federal Reserve's stance on potential interest rate adjustments. This is especially important given recent economic data.

Despite the Federal Open Market Committee (FOMC) pausing and subsequently halting its monetary policy tightening last year, inflation has been consistently declining. However, the rate of decline has slowed down significantly, while the sectors of the economy that are of prime concern to the Federal Reserve have continued to experience strong growth rates.

Key Movers

Martin Holzmann has recently made a noteworthy statement. He initially suggested that the European Central Bank (ECB) might implement only one rate cut this year. However, his stance seems to have changed yesterday. He now believes that the ECB is ready to reduce rates before the Federal Reserve (Fed) does so. He cites the disparate economic trajectories of the two regions.

Expected Ranges

  • GBP/USD: 1.2535 - 1.2595 ▼
  • GBP/EUR: 1.1645 - 1.1695 ▼
  • EUR/USD: 1.0725 - 1.0785 ▼

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.