FOREX TODAY: BOC RATE DECISION, UK BUDGET

WHAT YOU NEED KNOW ON WEDNESDAY, MARCH 6 IS AS FOLLOWS:

Wednesday's major data releases and macroeconomic events are expected to cause volatility to increase after another day of erratic trading in the financial markets. The Spring Budget for the UK will be released, and January Retail Sales figures for January will be made available by Eurostat. ADP Employment Change for February and January JOLTS Job Openings will be discussed later in the session on the US economic docket. In addition to testifying before the House Financial Services Committee, Jerome Powell, the chairman of the Federal Reserve, will make announcements through the Bank of Canada (BoC).

As the benchmark 10-year US Treasury below 4.2% during the early American session on Tuesday, the US Dollar (USD) Index fell toward 103.50. However, the Wall Street and the negative change in the USD gain traction and safe-haven flows. On Wednesday morning, at approximately 4.15% as the USD Index moves little below 104.00. US market index futures are trading mixed.

US DOLLAR EXCHANGE RATE FOR THIS WEEK

The US dollar's (USD) percentage movement compared to a list of major currencies for this week is displayed in the table below. In relation to the pound sterling, the US dollar was the weakest.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box will indicate EUR (base)/JPY (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.

On Wednesday, the EUR/USD continued its sideways trend around 1.0850 into the European day.

GBP/USD closed in positive territory for the third straight day on Tuesday, reaching its highest level since early February at 1.2735. On Wednesday morning in Europe, the pair continues to consolidate.

Following its meeting in March, the BoC will maintain at 5%. On Tuesday, the USD/CAD closed at 1.3600, its highest closing daily since 2024.

Australia's GDP grew at an annual pace of 1.5% in the fourth quarter, according to figures released earlier in the day. This number was marginally better than the market's estimate of a 1.4% gain, and it followed the 2.1% growth noted. During Asian trading hours, the AUD/USD began to gradually rise and was last observed trading above 0.6500.

On Tuesday, USD/JPY broke its two-day winning streak due to bearish pressure. Early on Wednesday, the pair kept moving downward; it was last seen trading below 150.00.

After approaching a fresh record high above $2,040 in the American session on Tuesday, gold staged a correction. XAU/USD is stable just below $2,030 on Wednesday morning in Europe.