Being traded in a sharp drop on Thursday, the euro was close to 1.19, afterthat the ECB president said the central bank may need some time beforeto accelerate the pace of recently agreed bond purchases . In addition, the pacevaccinations in the European Union continues to worry investors.
In contrast, the DXY index was up, returning to the level of 91.8, whiletreasury yields remain high amid a constant concern with theinflation growth. The Federal Reserve has pledged to maintain the prospect ofinterest rate close to zero until at least 2023, despite the prospects for a stronggrowth and inflation. The Fed chairman also reiterated that any increase ininflation is likely to be temporary and has shown no concern about the recent sell-off on bonds . Anyway, the speech failed to allay concernsof investors in relation to pressure on prices, as a more positive tone was expectedhawkish from the US central bank due to the successful launch of the vaccine and therecently agreed fiscal stimulus.
Gold prices reversed recent gains and were being traded downwards,below USD 1727 an ounce, pressured by the strength of the dollar with the rise in treasuryyields .
The Nasdaq and S&P 500 were down about 1.5% and 0.6% respectively,mainly due to the strong decline in technology stocks, while the Dow Joneswas up and again renewed a record high today, led by JPMorganChase.In Europe, indices closed higher, with the DAX 30 rising more than 1% and renewingrecord high after the Federal Reserve said it would keep rates close to zerountil at least 2023, even with inflation and growth increasing.
The number of Americans who applied for unemployment insurance has risen to770 thousand in the week ended March 13, the highest level in a month and aboveexpectations of 700 thousand, since the Covid-19 crisis continued to affect thejob. Still, initial orders are expected to fall within the next few weeks afterthe approval of President Biden’s aid package and according to several statessoften the restrictions induced by the coronavirus. In addition, about 282 thousand peoplerequested help from the Pandemic Unemployment Assistance scheme, whichworkers who do not qualify for initial orders, compared to 479 thousand in the periodprevious
