Forex traders should keep an eye on where various currencies stand in value to each other. Watching when and how these currencies change can provide insight into trading, especially when one currency is valued much more or much less than another. Here is where some of the major currencies stand.
As the market moves into the middle of March, the value of the U.S. dollar remains in a slump. The exchange rate continues to be low in respect to a number of other currencies, but many expect the Federal Reserve to continue with its current policy and refuse to adjust the interest rate. However, many also expect the dollar to fall even more if the Fed does not show some sign that it is working to improve the currency’s value at its meeting on 15th-16th March. Its index hit 96.108 on the Australian market on Monday following a 1.2 percent decrease last week.
The euro, on the other hand, is aiming for a one-month high. Last Thursday, the currency reached $1.1218, and despite a slight drop, it reached $1.1172 early Monday in the Australian market. That’s just a bit short of the one-month high where it sat on Thursday, when its value was held at $1.1218.
The Canadian dollar improved to C$1.3168 to the U.S. dollar, which is almost a four-month high. The Australian dollar, likewise, remained at a near eight-month high against the U.S. dollar with a value of $0.7583.
Overall, most currencies remained fairly steady following last week’s somewhat uneven activity. On Thursday, the European Central Bank unveiled several bold plans to ease back a bit, but later indications seemed to say that there would be limited interest rate cuts. This confusion led traders to hold back initially, but on Friday, it appeared that some supported the ECB’s decision.