- EUR/USD retraces to near 1.1560 from the weekly high of 1.1616 as the US Dollar gains ground.
- Diminished fears of the Fed’s policy divergence with other central banks had weighed on the US Dollar.
- The Euro gains on hopes of the ECB’s rate hike talks in April.
The EUR/USD pair retraces from the weekly high of 1.1616 posted on Thursday, trades 0.2% lower at around 1.1560 during the Asian trading session on Friday. The major currency pair corrects as the US Dollar (USD) attempts recovery after a sharp sell-off.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | 0.17% | 0.38% | -0.07% | 0.03% | -0.16% | 0.13% | |
| EUR | -0.24% | -0.07% | 0.16% | -0.29% | -0.21% | -0.39% | -0.11% | |
| GBP | -0.17% | 0.07% | 0.23% | -0.25% | -0.14% | -0.33% | -0.04% | |
| JPY | -0.38% | -0.16% | -0.23% | -0.45% | -0.35% | -0.55% | -0.24% | |
| CAD | 0.07% | 0.29% | 0.25% | 0.45% | 0.10% | -0.09% | 0.20% | |
| AUD | -0.03% | 0.21% | 0.14% | 0.35% | -0.10% | -0.19% | 0.10% | |
| NZD | 0.16% | 0.39% | 0.33% | 0.55% | 0.09% | 0.19% | 0.29% | |
| CHF | -0.13% | 0.11% | 0.04% | 0.24% | -0.20% | -0.10% | -0.29% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is up 0.2% to near 99.35. The USD Index fell over 1% to near 99.00 on Thursday after major global central banks warned of upside inflation risks and signaled an extended pause in the wake of higher energy prices amid conflicts in the Middle East. This led to diminishing fears of wider policy divergence between the Federal Reserve (Fed) and other global central banks.
The European Central Bank (ECB) decided to leave interest rates unchanged on Thursday, citing uncertainty surrounding prices and the economy due to the joint military action by the United States (US) and Israel against Iran. Also, President Christine Lagarde warned in the press conference that the “increase in energy prices will drive inflation above 2% in the near term”.
Meanwhile, a Reuters report showed in the North American session on Thursday that the ECB could discuss hiking key borrowing rates in April and might do so in the June meeting if energy prices continue to remain higher. This led to a sharp upside move in the Euro (EUR).
For more cues on the ECB’s monetary policy outlook and clarity on reports claiming the potential discussion of an interest rate hike in April, investors will focus on commentaries from officials who generally comment on forward monetary conditions after a policy announcement.
