{"id":17545,"date":"2025-03-21T08:19:40","date_gmt":"2025-03-21T08:19:40","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=17545"},"modified":"2025-03-21T08:19:40","modified_gmt":"2025-03-21T08:19:40","slug":"forex-market-analysis-21-march-2025","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/de-eu\/analysis\/forex-market-analysis-21-march-2025\/","title":{"rendered":"Forex market analysis: 21 March 2025"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2026\/04\/34-25-1024x536.png\" alt=\"\" class=\"wp-image-17547\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The offshore yuan is feeling the pressure as the US dollar keeps gaining strength, boosted by the Federal Reserve\u2019s cautious approach to interest rates. While the yuan\u2019s slide reflects broader global trends, the People\u2019s Bank of China is treading carefully, adjusting its policies to prevent sharp fluctuations. With markets closely watching for any shifts in policy from both China and the US, all eyes are on what might drive the yuan\u2019s next move.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Offshore yuan weakens to over a one-week low<\/strong><\/h2>\n\n\n\n<p>The offshore yuan (USD\/CNH) slipped past the 7.25 per dollar mark on Friday, hitting its weakest level in over a week, as the US dollar maintained its upward trajectory.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Federal Reserve will be in no rush to cut interest rates while it waits for more clarity on how the policies of the new Trump administration affect the economy, Chair Jerome Powell said <a href=\"https:\/\/t.co\/3ctv6xzjXv\">https:\/\/t.co\/3ctv6xzjXv<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1898072661877526601?ref_src=twsrc%5Etfw\">March 7, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The dollar&#8217;s strength was driven by hawkish remarks from Federal Reserve Chair Jerome Powell, who indicated that the Fed is not in a hurry to lower interest rates, further supporting demand for the greenback.<\/p>\n\n\n\n<p>At the latest reading, the USD\/CNH pair was trading at 7.25255, having touched a session high of 7.25963.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>PBOC eases yuan support, holds interest rates steady<\/strong><\/h2>\n\n\n\n<p>The People\u2019s Bank of China (PBOC) has reduced its intervention to prop up the yuan, reflected in softer daily midpoint fixings, a move that hints at its intention to moderate sharp declines against the US dollar.<\/p>\n\n\n\n<p>This has been interpreted by market participants as a signal of decreased currency market intervention.<\/p>\n\n\n\n<p>Meanwhile, the PBOC maintained key lending rates unchanged for the fifth straight month in March 2025, aligning with market expectations.<\/p>\n\n\n\n<p>The one-year loan prime rate remains at 3.1%, while the five-year rate holds at 3.6%. These rates remain at historically low levels following reductions in October and July 2024.<\/p>\n\n\n\n<p>The central bank has also left the door open for potential future changes in lending rates or the reserve requirement ratio, depending on economic conditions.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical analysis overview<\/strong><\/h2>\n\n\n\n<p>The offshore yuan (USD\/CNH) advanced by 0.03% during the latest session, closing at 7.25255 after opening at 7.25068.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/de-eu\/wp-content\/uploads\/sites\/17\/2026\/04\/21.3_2-1024x450-1.jpg\" alt=\"\" class=\"wp-image-17546\" \/><figcaption class=\"wp-element-caption\">USDCNH tests resistance at 7.25357 after a steady rise from 7.22547, as seen on the <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263?mt=8\" target=\"_blank\" rel=\"noopener\" title=\"VT Markets app\">VT Markets app<\/a>.<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The pair followed a gradual upward trend, hitting an intraday high of 7.25963 before slightly retracing and closing near its peak.<\/p>\n\n\n\n<p>Key technical indicators point to bullish momentum. The moving averages (MA 5,10,30) show consistent upward movement, with shorter-term MAs staying above longer-term ones, reinforcing the positive trend.<\/p>\n\n\n\n<p>The MACD (12,26,9) also indicates bullish sentiment, with the MACD line (blue) positioned above the signal line (yellow) and an expanding histogram supporting upward momentum.<\/p>\n\n\n\n<p>Important levels to watch include immediate resistance at 7.25357 and key support at 7.24597.<\/p>\n\n\n\n<p>A decisive move above resistance could open the door for further gains, while a drop below support might weaken the bullish outlook.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Market outlook and key drivers<\/strong><\/h2>\n\n\n\n<p>Despite the US dollar&#8217;s continued strength\u2014bolstered by robust economic data and tightening monetary policy expectations\u2014the offshore yuan faces downward pressure.<\/p>\n\n\n\n<p>However, efforts by Chinese policymakers to boost the domestic economy and stabilise the currency may provide a counterbalance.<\/p>\n\n\n\n<p>Traders should closely monitor updates from the People\u2019s Bank of China and any shifts in US-China relations that could influence currency movements.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noopener\" title=\"here\">here<\/a> to open account and start trading.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The offshore yuan is feeling the pressure as the US dollar keeps gaining strength, boosted by the Federal Reserve\u2019s cautious approach to interest rates. While the yuan\u2019s slide reflects broader global trends, the People\u2019s Bank of China is treading carefully, adjusting its policies to prevent sharp fluctuations. With markets closely watching for any shifts in <a href=\"https:\/\/www.vtmarkets.com\/de-eu\/analysis\/forex-market-analysis-21-march-2025\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":102,"featured_media":17547,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[28],"tags":[],"class_list":["post-17545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/posts\/17545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/comments?post=17545"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/posts\/17545\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/media\/17547"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/media?parent=17545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/categories?post=17545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/de-eu\/wp-json\/wp\/v2\/tags?post=17545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}