News & Analysis

FX analysis – USDJPY hits 34 year highs, Gold surges

28 March 2024 By Lachlan Meakin


Thin trading in FX markets continued in a holiday shortened week with G10 FX mostly flat against the USD in Wednesday’s session also looking like traders are waiting for Fridays key US PCE inflation reading. The highlights were:

USDJPY pushed past its November 2023 high hitting 151.97 which is the highest level this pair has reached since 1990 and bringing intervention speculation to the fore once more, with some trading desks flagging the possibility of intervention during thin Easter markets. Comments from Finance Minister Suzuki who said he was closely watching FX moves and won’t rule out any steps including decisive steps to respond to disorderly FX moves also stoking the intervention fire.

Gold surged higher with XAUUSD testing the previous all-time high and resistance level at 2195 USD an ounce after an earlier sell-off on a Reuters report that India is to drastically cut its gold imports in March. While the USD was flat, treasury yields did have a decent drop which supported the gold price.

Today ahead in economic news, the highlights are US jobs and GDP data.

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