Mar. 18: American Session
Tatiana Norkina, analyst at FBS
The U.S. dollar index is strengthening today (+0.20%), after the release of the inflation data. Thus, the consumer price index is 1.6% in the annual calculation, and 1.0% - monthly, which reflects analysts' predictions. Major U.S. stock indexes are also in the green zone. S&P500 has been growing for two days in a row and has added about 0.55% today, DJIA has added 0.50%.
There is an activity increase in the currency markets. Thus, the EUR/USD pair has plummeted from today's maximums of 1.3940 to 1.3880; the bears keep stepping up. The GBP/USD currecny pair has failed to overcome the current resistance of 1.6640-1.6645 and is trading in the 1.6545 area.
USD/CHF has soared to around 0.8770, while USD/JPY has dropped below 101.50 again, which can be interpreted as a sign of the bulls' weakness.