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EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Rebounds Amid Rising Demand For Safe-Haven Assets

By:
Vladimir Zernov
Published: Mar 24, 2023, 15:45 GMT+00:00

Traders remain worried about the potential banking crisis in the U.S. and EU.

U.S. Dollar

In this article:

Key Insights

  • U.S. Dollar Index climbed above the 103 level. 
  • EUR/USD declined below 1.0750 amid worries about the health of the banking sector in Europe. 
  • USD/JPY made an attempt to settle below the 130 level. 

U.S. Dollar

DXY
DXY 240323 Daily Chart

U.S. dollar rebounds despite falling Treasury yields as demand for safe-haven assets grows. Today, the shares of the European banks suffered a strong sell-off amid worries about the financial health of Deutsche Bank. Treasury Secretary Janet Yellen called a Financial Stability Oversight Council. At the time of writing, the outcome of the meeting is not yet known.

Traders also focused on the flash readings of PMI reports for March. Manufacturing PMI and Services PMI exceeded analyst expectations, highlighting the strength of the U.S. economy. Most likely, bank-related news will remain the key driver for currency markets today.

EUR/USD

EUR/USD
EUR/USD 240323 Daily Chart

EUR/USD pulled back below the 1.0750 level as traders focused on the banking crisis. While regulators are trying to calm markets, it remains to be seen whether their efforts will be successful. If European banks face more problems, the euro may find itself under more pressure.

GBP/USD

GBP/USD
GBP/USD 240323 Daily Chart

GBP/USD has also moved lower in today’s trading session as demand for riskier assets declined. In the UK, Manufacturing PMI declined from 49.3 in February to 48 in March, while Services PMI decreased from 53.5 to 52.8. Both reports missed analyst expectations.

USD/CAD

USD/CAD
USD/CAD 240323 Daily Chart

USD/CAD made an attempt to settle above the 1.3800 level as traders focused on the pullback in the oil markets. Other commodity-related currencies have also found themselves under pressure. AUD/USD declined below the 0.6650 level, while NZD/USD tested the 0.6200 level.

USD/JPY

USD/JPY
USD/JPY 240323 Daily Chart

USD/JPY made an attempt to settle below the 130 level as Treasury yields declined. USD/JPY traders ignore the general dynamics of the U.S. dollar and focus on Treasury yield dynamics due to the ultra-dovish policy of the BoJ.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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