Posted at 13 March 2023 / Categories Market Roundups
Market Roundup
•Greek Feb HICP (YoY) 6.5%, 7.3% previous
•Greek Feb CPI (YoY) 6.1%,7.0% previous
•Portuguese Jan Trade Balance -7.27B,-2.75B previous
Looking Ahead Economic Data(GMT)
•14:00 French 3-Month BTF Auction 2.825% previous
•14:00 French 6-Month BTF Auction 3.022% previous
•14:00 French 12-Month BTF Auction 3.358% previous
•15:00 US Consumer Inflation Expectations 5.0% previous
•15:30 US 3-Month Bill Auction 4.765% previous
•15:30 US 6-Month Bill Auction 4.970% previous
Looking Ahead Events And Other Releases (GMT)
• No events ahead
Fxbeat
EUR/USD: The euro strengthened against the dollar on Monday as greenback fell on expectations that Fed will slow down the pace of its interest rate hikes after fallout from the collapse of Silicon Valley Bank (SVB) failed to ease fears. The market turmoil from the SVB collapse led investors to speculate the Fed will no longer raise interest rates by a super-sized 50 basis points this month. After the SVB collapse, traders now expect the Fed to no longer raise interest rates by 50 basis points this month, in contrast to a 70% probability before the event. The focus will now be on Tuesday's inflation data to gauge how hawkish the Fed is likely to be. Immediate resistance can be seen at 1.0738 (Daily high), an upside break can trigger rise towards 1.0781(23.6%fib).On the downside, immediate support is seen at 1.0665 (38.2%fib), a break below could take the pair towards 1.0609(5DMA).
GBP/USD: Sterling rose against a weakening dollar on Monday after the sudden collapse of U.S. tech-focused lender Silicon Valley Bank (SVB) raised expectations that the Federal Reserve will slow down the pace of its interest rate hikes. The biggest bank collapse since the 2008 financial crisis roiled markets and weakened the U.S. dollar against major peers as investors price in the possibility that the Fed will take a less aggressive monetary policy tightening path.The U.S. government announced several emergency measures to shore up confidence in the banking system. Immediate resistance can be seen at 1.2165 (23.6%fib), an upside break can trigger rise towards 1.2221(Higher BB).On the downside, immediate support is seen at 1.1981(38.2%fib), a break below could take the pair towards 1.1931(5DMA).
USD/CHF: The dollar declined against the Swiss franc on Monday as greenback fell sharply on expectations that the largest U.S. bank failure since the 2008 financial crisis would prompt the Federal Reserve to slow the pace of its interest rate hikes. The dollar was down 0.3% against a basket of global currencies , as investors speculated the Fed would no longer raise rates by 50 basis points this month after the sudden collapse of Silicon Valley Bank . Investors will scrutinise Tuesday's U.S. inflation data to predict how hawkish the central bank will be. Immediate resistance can be seen at 0.9209 (38.2%fib), an upside break can trigger rise towards 0.9289(5DMA).On the downside, immediate support is seen at 0.9100(23.6%fib), a break below could take the pair towards 0.9059(Lower BB).
USD/JPY: The dollar declined against yen on Monday as expectations the Federal Reserve will be less aggressive in raising interest rates after authorities stepped in to limit the fallout from the sudden collapse of Silicon Valley Bank. The dollar index , which measures the U.S. currency against six others, slipped as much as 0.55% to near one-month lows of 103.67. The yen strengthened 1.5% to 133.03 per U.S. dollar, its highest level in nearly a month, while the U.S. currency fell 0.8% versus the franc to 0.9140. Strong resistance can be seen at 133.56(50%fib), an upside break can trigger rise towards 134.00(Psychological level).On the downside, immediate support is seen at 132.16(Daily low), a break below could take the pair towards 131.51(38.2%fib).
Equities Recap
Europe's bank shares suffered their biggest fall in over a year and bond markets saw a gigantic repricing of rate hike bets on Monday as global efforts to limit the fallout from the collapse of Silicon Valley Bank (SVB) failed to ease fears.
At (GMT 13:43 ),UK's benchmark FTSE 100 was last trading down at 2.51 percent, Germany's Dax was down by 3.45 percent, France’s CAC was down by 3.31 percent.
Commodities Recap
Gold raced towards the key $1,900 level on Monday, emboldened by bets that the Federal Reserve may now have to tone down its rate hikes as investors sought cover from uncertainty triggered by the collapse of Silicon Valley Bank.
Spot gold was up 0.9% at $1,884.06 per ounce, as of 1043 GMT. Earlier in the session, prices hit their highest since early Feb at $1,893.96. U.S. gold futures gained 1.1% to $1,886.80.
Oil prices fell $4 on Monday along with equities as the collapse of Silicon Valley Bank raised fears of a fresh financial crisis, but a recovery in Chinese demand provided support.
Brent crude futures were down $3.96, or 4.8%, to $78.82 per barrel by 1220 GMT. West Texas Intermediate U.S. crude futures (WTI) fell by $3.86, or 5%, to $72.82 a barrel.