Posted at 20 March 2023 / Categories Market Roundups
Market Roundup
•German Feb PPI (MoM) -0.3%,-0.5% forecast,-1.0% previous
•German Feb PPI (YoY) 15.8%, 14.5% forecast, 17.8% previous
•Greek Jan Credit Expansion (YoY) 6.3% ,9.1% previous
•EU Jan Trade Balance -30.6B,-12.5B forecast,-8.8B previous
Looking Ahead Economic Data(GMT)
•14:00 EU French 6-Month BTF Auction 2.819% previous
•14:00 EU French 12-Month BTF Auction 2.891% previous
•14:00 EU French 3-Month BTF Auction 2.665% previous
•15:30 US 3-Month Bill Auction 4.750% previous
•15:30 US 6-Month Bill Auction 4.700% previous
Looking Ahead Events and Other Releases(GMT)
•16:00 EU ECB President Lagarde Speaks
•14:00 EU ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro gained on Monday as dollar dipped as risks of a banking crisis continued to spook investors after UBS sealed a deal to buy Credit Suisse and some of the world's largest central banks teamed up to reassure markets. Markets kept expectations for the next ECB moves around the lowest levels seen last week, showing they were cautious about recent ECB statements. Markets' focus will shift to the Federal Reserve policy meeting, which ends on Wednesday. The euro strenthed to trade at 1.0709 after pulling back from daily low .Immediate resistance can be seen at 1.0725 (23.6%fib), an upside break can trigger rise towards 1.0762Higher BB).On the downside, immediate support is seen at 1.0665(38.2%fib), a break below could take the pair towards 1.0619(50%fib).
GBP/USD: Sterling strengthened against the dollar on Monday as worries about the global banking sector returned to the fore despite rescue efforts by Swiss lender UBS to buy peer Credit Suisse to stabilise broader financial markets. After the deal was announced, The U.S. Federal Reserve, European Central Bank and other major central banks pledged to enhance market liquidity and support other banks. By 1435 GMT, the pound was up 0.54% against the dollar to 1.2238. It dropped as low as $1.2265 .Immediate resistance can be seen at 1.2255 (23.6%fib), an upside break can trigger rise towards 1.2295(Higher BB).On the downside, immediate support is seen at 1.2167(Daily low), a break below could take the pair towards 1.2078(38.2%fib).
USD/CHF: The dollar initially gained against the Swiss franc on Monday but gave up ground as simmering concerns over the health of the global financial system soured sentiment, even as a Swiss-backed rescue plan for Credit Suisse materialised over the weekend.. Amid an ongoing banking crisis, investors will keenly watch a Fed policy decision due on Wednesday. Traders are now pricing in a 59% chance of the Fed holding rates in the current range. The dollar up 0.19% to 0.9272 against the Swiss franc. Immediate resistance can be seen at 0.9275(5DMA), an upside break can trigger rise towards 0.9311(38.2%fib).On the downside, immediate support is seen at 0.9262(50%fib), a break below could take the pair towards 0.9203(61.8%fib).
USD/JPY: The dollar declined against yen on Monday as demand for safe havens assets such as yen rallied as a weekend deal to rescue Credit Suisse and promises of liquidity from central banks could not stem fears that a bigger crisis is brewing in the financial system. Sunday saw the most dramatic state intervention since the 2008 global financial crisis, with UBS buying Credit Suisse for 3 billion francs ($3.2 billion) in a shotgun wedding backstopped by unlimited funding pledges from the world's top central banks. Safe-haven demand jumped in the currency markets, with the Japanese yen gaining 0.22% at 131.54.Strong resistance can be seen at 134.33(10DMA), an upside break can trigger rise towards 135.00 (50%fib).On the downside, immediate support is seen at 130.70(23.6%fib), a break below could take the pair towards 130.00(Psychological level).
Equities Recap
European stocks bounced off early lows on Monday as utilities and miners gained, offsetting some losses in bank stocks that were sparked by UBS' shotgun deal to buy Credit Suisse for a fraction of its market value.
At (GMT 13:05 ),UK's benchmark FTSE 100 was last trading up at 0.61 percent, Germany's Dax was up by 0.91 percent, France’s CAC was up by 1.16 percent.
Commodities Recap
Gold prices fell on Monday as investors booked profits after the asset rose above a one-year peak of over $2,000 earlier in the day, amid banking fears and increasing bets of a rate pause by the Federal Reserve.
Spot gold was down 0.6% at $1,975.33 per ounce, as of 1035 GMT. U.S. gold futures jumped 0.8% to $1,988.90.
Oil prices dropped to their lowest in 15 months on Monday, driven down by concern that risks in the global banking sector and a potential increase to U.S. interest rates could spark a recession that would sap fuel demand.
In volatile trading, Brent crude futures for May fell 87 cents, or 1.2%, to $72.10 a barrel by 1211 GMT. The U.S. West Texas Intermediate crude contract for April was down 85 cents, or 1.3%, at $65.89 before its expiry on Tuesday.