Traders Eyeing Central Bank Rate Decisions

March 15, 2022

GBP/USD: The British pound rose against the U.S. dollar on Tuesday, recovering after a decline to a 16-month low, as hopes for progress in talks between Russia and Ukraine dampened demand for U.S. currency and other safe assets. The market is also awaiting policy announcements from the Bank of England and the U.S. Federal Reserve later this week. Both the BoE and Fed are expected to raise their key interest rates by 25 basis points at their respective meetings this week. Sterling fell to $1.30 against the dollar, its lowest level since November 2020, before paring losses to trade 0.2% higher at $1.3050. Immediate resistance can be seen at 1.3070. A breakout to the upside can trigger growth towards 1.3130.


BUY STOP 1.3070/TP 1.3130/SL 1.3050

 

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as signs of progress in peace talks between Russia and Ukraine reduced investor worries that commodity supplies will be in short supply. Canada is a major producer of commodities, including oil. Other commodity-linked currencies, such as the Australian dollar and the New Zealand dollar, also lost ground. Despite current development, the Canadian dollar still maintains its growth potential. The positive dynamics can be explained by a strong labor market report and the prospect of another rate increase in April. Immediate support is located at 1.2800. A breakout below could take the pair towards 1.2740.


SELL STOP 1.2800/TP 1.2740/SL 1.2820

 

USD/JPY: The dollar strengthened against the yen on Monday. The U.S. Federal Reserve is widely expected to raise interest rates at a two-day policy meeting on Wednesday, with investors already pricing in a hike of at least 25 basis points. The dollar hit a more than five-year high against the Japanese yen, it was last up against the yen at 118.50 yen. Strong resistance can be seen at 118.50. A breakout to the upside can trigger growth towards 119.00 (psychological level).


BUY STOP 118.50/TP 119.00/SL 118.30