Five of the major currencies achieved noticeable gains in the currency market today, Tuesday, against the other major currencies. These winning currencies were led by the US dollar, followed by the Canadian dollar, followed directly by the Japanese yen, followed by the Australian dollar, and the list of winners ended in the pound sterling. Profits ranged between The four aforementioned currencies are between 0.20% and 2.31% on average, and the following is a more detailed explanation of the reasons for the high gains of these currencies in today’s trading:
The US dollar rebounded today, Tuesday, to record a strong rise against other currencies, coinciding with several developments that affected its performance, especially the current geopolitical tensions regarding the Ukrainian situation, as well as the markets’ anticipation of tomorrow’s data that will be issued by the US Federal Reserve at 9:00 pm GMT, amid Expectations that the Federal Reserve will keep interest rates unchanged, but the focus will be on the interest statement and the press conference of US Federal Reserve Governor Jerome Powell, amid expectations that a hint will be made soon, specifically at the next March meeting, coinciding with high inflation, which has become a great burden on citizens, and then The upcoming Fed decisions will have a very strong impact on the movements of the dollar and all currencies this week.
The Sterling rose today against the other major currencies by about 0.20%, after the release of the CBI Industrial Demand Expectations index, which came positive, about two points higher than the market expectations, thus ending the list of gainers for the day.
The Canadian dollar
The Canadian dollar came on the list of gainers today, in contrast to yesterday, affected by the recovery witnessed by the oil market, as oil prices rose during trading today, Tuesday, and regained some of the gains that it had lost in the previous day’s trading, as it achieved sharp losses, amid fears of a possible disruption. supplies as geopolitical tensions escalate in both Eastern Europe and the Middle East.
Therefore, the Canadian dollar gained noticeable profits against the rest of the major currencies, reaching about 1.44%.
The Japanese yen
The Japanese yen made reasonable profits to join the list of gainers after Bank of Japan Governor Haruhiko Kuroda said Tuesday that the Bank of Japan should maintain expansionary monetary policy while monitoring the risks of accelerating inflation before wages start rising at the same time, Reuters news agency reports.
In light of the uncertainty in the markets about the risks of a possible Russian invasion of Ukraine, the Japanese yen’s gains today against other major currencies rose strongly until it reached 1.33%.
The Australian dollar
The Australian dollar rose today clearly after its decline yesterday, led by the positive economic data released today regarding the state of the Australian economy, where the quarterly inflation rates measured by the consumer price index came to 1.3%, which is higher than the market expectations of 1.0%.
Accordingly, these positive data and expectations boosted the demand for the Australian dollar against the other major currencies, and it gained about 0.52% today.