The dollar has difficulty accumulating strength, and the focus turns to the Bank of England

On March 20, as the market digests the Federal Reserve’s (Fed) policy announcement, the US dollar (USD) will struggle to outperform its avatradescn.competitors on Thursday. The Bank of England (BoE) will announce interest rate decisions later in the meeting, and the U.S. economic calendar will release weekly initial jobless claims figures, as well as existing home data for February.

The Federal Reserve announced on Wednesday that it would keep interest rates unchanged, a decision in line with market expectations. At the same time, the Fed still maintains its forecast of 25 basis points cuts twice this year.

In view of the risks posed by US President Donald Trump's tariff policy, policymakers raised inflation forecasts this year and lowered economic growth expectations, but investors are still relieved by the Fed's "dot map" and Chairman Powell's avatradescn.comments. Powell said inflation caused by tariffs will be "temporary" and will mainly affect price levels this year. This statement drove U.S. stocks to rise, while U.S. Treasury yields and the U.S. dollar fell.

Kerry Craig, global market strategist at JPMorgan Asset Management, said the Fed remained loose and would continue to weigh the differences between consumer and business survey data (relatively pessimistic) and retrospective data such as the labor market (still strong). He pointed out: "The Fed does not have all the answers, but the market seems to believe that the Fed will take action if needed."

Basic Forex Market Market:

National Statistics UK reported on Thursday that, as expected, the ILO unemployment rate stabilized at 4.4% in the three months to January. During this period, employment changes increased by 144,000 people. After the UK employment report was released, the GBP/USD fell slightly below 1.3000 on the day. Later that day, the market generally expectedThe Bank of England will maintain its policy settings. There will be no press conferences after the rate decision is issued. Therefore, investors may pay close attention to voting allocations.

The Swiss National Bank (SNB) will also announce a policy decision on Thursday, which is expected to lower the policy interest rate by 25 basis points to 0.25%. After two consecutive days of declines, the US dollar/CHF found support and closed basically flat on Wednesday. The pair fluctuates in a relatively narrow channel above 0.8750 in the early European session.

Euro/USD fell about 0.4% on Wednesday, ending a three-day rise. The pair is difficult to gain traction and trades below 1.0900 to start the European session. ECB President Christine Lagarde will speak in the European Parliament on Thursday.

After testing 150.00 on Wednesday, the USD/JPY reversed and closed with a loss. The pair continued to move slightly lower, trading below 148.50 on Thursday.

Big market fundamentals:

In terms of avatradescn.commodities, oil prices rose slightly due to the tension in the Middle East. Brent crude futures rose 0.54% to $71.16 a barrel. U.S. WTI crude oil futures rose 0.54% to $67.52 per barrel

In the gold market, gold prices hit a new high again at $3,057.28, driven by expectations that the Federal Reserve may cut interest rates further.

    Analysis of major currencies:

Euro: Euro/USD consolidates below 1.0953, and intraday bias remains neutral. As long as the support level of 1.0821 is held, it is expected to rebound further. On the plus side, breaking through 1.0953 will resume the rise from 1.1076, retesting the key resistance level of 1.1274. However, the downside is that breaking through the 1.0821 support level will indicate a short-term peak, and there may be a bearish divergence condition in 4HMACD. This will bring bias back to the downside, resulting in a deeper callback.

GBP: The intraday bias of GBP/USD rose again, breaking through the temporary top of 1.3009https://avatradescn.com. The current rebound from 1.2099 should target the high point of 1.3433. However, a firm breakthrough of 1.2910 will indicate a short-term peak and may see bearish divergence conditions in 4HMACD. This will redirect intraday bias to the downside, resulting in a deeper callback.

JPY: The current sharp decline in the USD/JPY indicates a decline in channel resistance at the near future. The focus is now on the secondary support level of 148.22. A firm breakthrough will indicate that the correction rebound from 146.52 has been avatradescn.completed and the low is first retested. Continued below the 61.8% retracement level of 146.32 from 139.57 to 158.86 will resume the decline from 158.86 to 139.57 support level. If it recovers again, the upside space should be limited by the 150.92 support to turn resistance level.

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