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Old 22-03-2021, 18:09
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KostiaFM KostiaFM is offline
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Default Re: Daily Market Analysis by ForexMart

GBP/USD. March 22, 2021 | Sterling moderately grows at the beginning of the week

At the end of last trading week, the pound sterling fell to the 1.3800 area. On Monday, the pair is trying to win back losses, rising to 1.3850.

The latest macroeconomic data from the UK turned out to be rather weak, so the pound is unlikely to strengthen significantly. The pound made some attempts to grow after the announcement of the results of the meeting of the Bank of England last Thursday. The regulator decided to keep the base interest rate at 0.1%, and the volume of redemption of assets from the market at 895 billion pounds.

The central bank also noted that if the inflation forecast deteriorates, the monetary policy committee is ready to take any necessary additional actions. However, no tightening of monetary policy is expected until there is confidence in achieving a robust 2% inflation target.

Today the macroeconomic calendar is empty. In the coming days, data on business activity, employment, inflation and retail sales in the UK will be released. Experts expect the numbers to strengthen as mass vaccinations boost confidence and economic activity.

EUR/USD. March 22, 2021 | The euro is trying to close above 1.19

The main currency pair is trading slightly above the 1.1900 level on Monday. The euro is trying to regain the losses of the last week, but this is not happening very confidently. The fact is that the US dollar remains quite stable after the comments and decisions of the FRS following the March meeting. Moreover, the yield on US government bonds continues to rise, which provides fundamental support to the greenback.

The rise in bond yields came after the announcement that the Fed had not extended the benefits for second-tier banks introduced last year due to the coronavirus pandemic. The mechanism was introduced to stimulate bank lending; now, according to the Fed, there is no obvious need for it.

The euro, in turn, is under pressure due to the suspension of Covid vaccinations in Europe with the drug company AstraZeneca. Investors fear that against the background of this, the terms of lockdowns in some European countries will be extended, and this is a certain negative for the European currency.

Today the macroeconomic calendar is completely empty. Attention can only be attracted by the speech of the head of the US Federal Reserve, Jerome Powell. However, market participants are unlikely to learn something new, since the head of the regulator has repeatedly commented on the prospects for the Fed's monetary policy.
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