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March 18, 2021

Deadly USD Plunge Makes Major Currencies Rampage!

 The deadly plunge of the greenback dollar has prompted most major currencies to soar higher in the New York session.

This follows a dovish statement by the Federal Reserve (Fed) which says the central bank is prepared to adjust its monetary policy stance accordingly if risks arise.

Commodity -linked currencies were among the most profitable, particularly the Aussie dollar which was also supported by encouraging economic data.

Australia’s unemployment rate fell to 5.8% in February, much better than the revised reading in January and market expectations of 6.3%. Jobs jumped 88,700 last month compared to an expected increase of 30,000.

In addition, the kiwi dollar also recorded higher gains before being shaken by New Zealand's Gross Domestic Product (GDP) data readings which showed a 1% contraction in the fourth quarter.

The decline in the USD also pushed the Canadian dollar to soar to its latest high since February 2018, easing market concerns over Canada’s lackluster inflation figures with a reading of 0.5% from expectations of 0.7%.

Meanwhile, the pound and euro also rallied higher, trading around 1.39500 and 1.19700 against the US dollar, respectively.

The pound sterling is the main focus of the market ahead of the Bank of England (BOE) policy meeting tonight which is expected to see the central bank remain with interest rates unchanged.