The dollar dips as Powell signals that March is still data dependent

The USD has dipped after the Fed The Fed "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of Read this Term chair started his testimony saying that March is still dependent on data (i.e. the employment and CPI data to come). He reiterated that January data may have been influenced by better weather and seasonals. The expectations for jobs on Friday are for a 225K increase with unemployment rate of 3.4%. Data like that would still be indicative of a strong jobs market. Recall last month nonfarm payroll increased by 517 K.

EURUSD: The EURUSD moved to a new intraday high at 1.05694. That has taken the price above the swing low from last Wednesday at 1.0564. The price is back below the level 1.0558 currently . On the top side, a swing area between 1.0576 and 1.0585 or the next targets followed by the 38.2% retracement of the move down from the high this week which comes in at 1.0588. If the sellers are to remain in control, those levels should hold resistance if tested.

USDJPY: The USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term has moved to a new session low and in the process test the cluster of moving averages starting with the 100 hour and 100 day moving average at 136.43. Below that is the 200 hour moving average at 136.331. The buyers have leaned against those moving averages on the first test. The current price trades at 136.55.

USDCAD: The USDCAD moved to a new high after they kept rates unchanged as expected. The high price reached 1.37939. That high was still short of the swing high going back to November 2022 at 1.38062.

Drilling to the 5 minute chart below, the USDCAD traded mostly between 1.3743 and 1.37727 today before the recent up-and-down price action before and after the BOC rate decision. The 100 and 200 bar moving averages (blue and green lines in the chart below) are converged at 1.3758. Going forward, a move back below the 100 and 200 bar moving average and the 1.37437 level (the low of the swing area), would tilt some of the short-term bias to the downside. We could see some downside probing as a result.