Forex Today: Greenback returns by the hand of yields

What you need to know on Friday, March 19:

The greenback made a comeback as US Treasury yields resumed their advances. Most dollar’s rivals trimmed post-Fed gains. After US Federal Reserve chief Jerome Powell showed no concerns about rising government bond rates, long-term bond yields soared. That on the 10-year Treasury note hit 1.756%, to settle around 1.72%.

The EUR/USD pair trades around 1.1910, despite good news coming from Europe. The European Medicines Agency has ruled that the AstraZeneca coronavirus vaccine is safe, despite some concerns over possible side effects, related to blood clots. A few countries have already announced they will resume applying the shot in the next days.

GBP/USD topped at 1.4000 at the beginning of the day, but give up to renewed dollar’s demand. In the meantime, the Bank of England decided to leave the benchmark interest rate unchanged at 0.10% and kept the Asset Purchase Facility steady at £895 billion as widely expected. The accompanying statement noted that the pace of purchases “could remain at around its current level initially, with the flexibility to slow the pace of purchases later.”

Crude oil prices plummeted, sending USD/CAD above 1.2510. WTI settle around $59.30 a barrel. AUD/USD fell as Wall Street ended in the red, although the DJIA reached an all-time high mid-US session.

Gold returned to its comfort zone in the 1,720/30 price zone, ending the day at $ 1,734 a troy ounce.

The US government is studying relaxing travel restrictions mid-May, amid progress in vaccines rollout. There’s no official announcement on the matter.

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