Weekly Market Update 26 Mar 2021 – USD soared above other major currencies with positive signs of ongoing economic recovery
Weekly Market Update 26 Mar 2021 – USD soared above other major currencies with positive signs of ongoing economic recovery
1. USD rose against all of the majors, driving the Dollar Index to its strongest level in recent months. While the less than ideal US economic data showed mixed signals, the clear sign of the ongoing recovery of the US economy drove US assets higher.
2. German IFO business confidence jumped to the highest since 2019 despite uptick in COVID cases, stemming the slide in EURUSD. Italy’s PM Mario Draghi needs a new stimulus program within weeks to fund higher monthly lockdown costs. With tighter restrictions looming, there is still downside risk for EURUSD.
3. NZD faced some downward pressure as investors are concerned of the government’s efforts to curb housing price increases, though AUD, NZD, CAD rose across the board at the end of the week as oil prices rose sharply on Friday as authorities try to resolve the blockage on the Suez Canal, a vital trade passageway for approximately 12% of the world’s seaborne trade.
