Today, Thursday, in the foreign exchange market, only four currencies out of the major currencies achieved noticeable gains against other major currencies, led overwhelmingly by the US dollar, whose gains strengthened after the US Federal Reserve meeting yesterday, followed by the Canadian dollar with strong gains, then the euro and the Japanese yen with small and close profit percentages.

The gains of the four aforementioned currencies ranged between 0.43% and 5.87% on average, and below is a more detailed explanation of the reasons for the rise in the gains of these specific currencies in today’s trading:

The US dollar as the top gaining currency

The US dollar’s gains jumped today by a huge percentage, ranking first in the list of winning currencies today, benefiting from the US Federal Reserve’s decision yesterday and the new monetary tightening policies, achieving strong gains reaching about 5.87% against other major currencies.

Where the Monetary Policy Committee at the US Federal Reserve announced today, Wednesday, after the end of its meeting, a 0.50% interest rate hike in line with market expectations, raising the interest rate to 1%.

Strong gains for the Canadian dollar

The Canadian dollar came second among the winners, boosted by the rise in oil prices, especially Brent crude, which is currently trading at $113.17 per barrel with a huge increase of about 2.66%.

Therefore, the Canadian dollar earned strong gains today against other major currencies, totaling about 3.76% approximately.

The euro benefits from monetary tightening expectations

The euro came third in the list of winning currencies today, benefiting from traders’ demand due to expectations of the European Central Bank raising interest rates during its upcoming meetings for the rest of 2022.

Philip Lane, the chief economist of the European Central Bank, indicated that the ECB will move and adjust interest rates not just once, but progressively over time, and thus the euro achieved gains of about 0.90% against other major currencies.

The Japanese yen at the tail of the winning currencies

The Japanese yen gained a noticeable profit percentage today, ranking last in the list of winning currencies, achieving about 0.43% against other major currencies, despite its fluctuations during the past period due to the Bank of Japan’s continuation of easing policies while all central banks around the world are moving towards monetary tightening.