Intraday Forex Wednesday, March 17 (EURUSD, USDJPY, etc.) Dollar held gains for the fourth session, focus shifted to the FOMC meeting later today.

[EURUSD]

  • The euro was flat versus the dollar after declining in the past three sessions, traded at $1.19037.
  • Speculation about what the Fed will say on Wednesday at the end of its 2-day meeting kept markets mostly range-bound. Fed policymakers are expected to forecast the U.S. economy will grow in 2021 by the fastest rate in decades as it recovers from a coronavirus-stricken 2020.
  • A higher T-note yields are positive for the dollar, with the 10-year T-note yield rose on Wednesday.
  • Euro zone government bonds held ground as caution set in before the Fed meeting.
  • Concern about a third COVID-19 wave in Europe meanwhile, has become a catalyst and bearish factor for EUR/USD. Europe’s vaccine roll-out has been hampered by the suspension of AstraZeneca shots in several European nations amid concerns about possible serious side effects, threatening economic growth and recovery, and tarnishing vaccine rollouts as a pillar for a global recovery.
  • Resistance line of 1.19553 and 1.19824.
  • Support line of 1.18677 and 1.18406.

[USDJPY]

  • The dollar reverses overnight losses to turned higher on Wednesday. Though it moves with caution evident ahead of the central bank meetings.
  • Against the yen, the greenback firmed 0.12% to 109.121 yen, hovering near 9-month highs hit this week.
  • The firmer tone for the dollar in the meanwhile, came following the higher T-note yields.
  • The U.S. economic data also bolstered the progress. U.S. import price data was stronger than expected and supportive for the dollar.
  • Next, traders are turning their focus to the extensive policy review by the U.S. Fed’s later today and on the BoJ monetary meetings on Friday this week.
  • Resistance line of 109.607 and 110.092.
  • Support line of 108.637 and 108.152.

[USDCHF]

  • Against the safe-harbor Swiss franc, the greenback bought 0.92561 franc, a 0.11% higher, to reverse last 2-day decline.
  • The Swiss franc retreated against the U.S. dollar today as traders bet for hawkish for Fed policy on March 16 and 17 FOMC meeting, with expectations that the central bank will revise its economy forecast following the $1.9 trillion fiscal stimulus aid.
  • The bout of higher U.S. bond yields also undermined low-yielding currencies, including the safe-haven Swiss franc.
  • Fiscal stimulus also fueled market expectations for a rapid recovery, with President Joe Biden signed the $1.9 trillion spending package last week.
  • Resistance line of 0.93363 and 0.93898.
  • Support line of 0.92293 and 0.91758.

[GBPUSD]​

  • The British pound were traded at $1.38911 on Wednesday.
  • The sterling traded almost unchanged with a downward bias against the U.S. dollar as traders were keeping an eye on the outcome of the 2-day FOMC meeting scheduled to end later today.
  • The currency, meanwhile, also has come under pressure from profit-taking after it hit a near 3-year high last month on the back of a fast vaccine roll-out.
  • The pound remained deterred by a strong U.S. dollar, higher U.S. Treasury yields, the possibility of the U.S. economy outperforming expectations, as well as expectations that higher U.S. yields would become more pronounced in the Q2.
  • The Bank of England also will meet on Thursday. The BoE is expected to keep its benchmark interest rate at its historic low of 0.1% and its bond-buying programme unchanged.
  • Resistance line of 1.39328 and 1.39707.
  • Support line of 1.38105 and 1.37727.

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