Posted at 28 March 2023 / Categories Market Roundups
Market Roundup
•French Mar Business Survey 104,103 forecast,104 previous
•Italian Mar Business Confidence 104.2, 102.5 forecast, 102.8 previous
•Italian Mar Consumer Confidence 105.1,104.0 forecast,104.0 previous
Looking Ahead Economic Data(GMT)
•12:30 US Wholesale Inventories (MoM) 0.2% forecast, -0.4% previous
•12:30 US Feb Goods Trade Balance 91.00B,-91.09B previous
•12:30 US Feb Retail Inventories Ex Auto 0.1% previous
•12:55 US Redbook (YoY) 3.2% previous
•13:00 US Jan S&P/CS HPI Composite - 20 n.s.a. (MoM) -0.9% previous
•13:00 US Jan S&P/CS HPI Composite - 20 n.s.a. (YoY) 2.5% forecast,4.6% previous
•13:00 US Jan House Price Index (YoY) 6.6% previous
•13:00 US Jan S&P/CS HPI Composite - 20 s.a. (MoM) -0.5% forecast,-0.5% previous
•13:00 US Jan House Price Index 392.1 previous
•13:00 US Jan House Price Index (MoM) -0.2% forecast,-0.1% previous
•14:00 US Richmond Services Index-3 previous
•14:00 US Richmond Manufacturing Shipments -15 previous
•14:00 US Richmond Manufacturing Index -16 previous
•14:00 US Mar CB Consumer Confidence 101.0 forecast,102.9 previous
•14:00 US Mar Texas Services Sector Outlook -9.3 previous
•14:30 US Dallas Fed Services Revenues 6.6 previous
•17:00 US 5-Year Note Auction 4.109% previous
•19:30 US API Weekly Crude Oil Stock 3.262M previous
Looking Ahead Events And Other Release (GMT)
•14:00 US Fed Barr Testimony
•14:00 EU German Buba Balz Speaks
Fxbeat
EUR/USD: The euro edged up on Tuesday after efforts by regulators to allay fears over the global banking system fuelled risk appetite as investors scaled back on safe-havens in favour of riskier assets .A U.S. regulator-backed deal by First Citizens BancShares to buy failed Silicon Valley Bank soothed worries about a banking crisis which recently triggered a rush into safe-haven assets. Focus also remained on the U.S. Federal Reserve’s interest rate strategy, with markets pricing in a 51% chance of the Fed standing pat on rates in May, according to the CME FedWatch tool. The euro was last up 0.26% to $1.083.Immediate resistance can be seen at 1.0843(Daily high), an upside break can trigger rise towards 1.0898(Higher BB).On the downside, immediate support is seen at 1.0750(38.2%fib), a break below could take the pair towards 1.0668(21DMA).
GBP/USD: Sterling hovered around a two-month high on Tuesday as the Bank of England (BoE) said Britain was not experiencing stress linked to the demise of Silicon Valley Bank (SVB) and Credit Suisse.BoE Governor Andrew Bailey told parliament's Treasury Committee in a hearing on SVB: I don't think that any, and we've said this, that any of these features cause stress in the UK banking system. The BoE raised interest rates last week by 25 basis points to 4.25%, but said a surprise resurgence in inflation would fade fast, prompting speculation it had ended its run of hikes. Risk-sensitive sterling rose 0.2% against the U.S. dollar at $1.2313, not far from an almost two-month high touched on Thursday. Immediate resistance can be seen at 1.2350 (23.6%fib), an upside break can trigger rise towards 1.2381(Higher BB).On the downside, immediate support is seen at 1.2267(5DMA), a break below could take the pair towards 1.2148(38.2%fib).
USD/CHF: The dollar steadied against the Swiss franc on Tuesday after a deal backed by the U.S. regulator for First Citizens BancShares to buy up Silicon Valley Bank helped alleviate some of the recent concern about the health of the banking sector.U.S. banking regulators said on Monday they planned to tell Congress that the overall financial system remains on a solid footing after recent bank failures, but will comprehensively review their policies in a bid to prevent future collapses. With a little more stability returning to the banking sector, investors felt confident enough to ditch some of their recent safe-haven purchases. Immediate resistance can be seen at 0.9173(5DMA), an upside break can trigger rise towards 0.9253(38.2%fib).On the downside, immediate support is seen at 0.9136(23.6%fib), a break below could take the pair towards 0.9077(Lower BB).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as easing worries about the banking system revived investor appetites for riskier currencies.Global banking stocks, which have been battered this month following the sudden collapse of Silicon Valley Bank and Signature Bank, received some respite on Monday after the Federal Deposit Insurance Corporation said First Citizens BancShares Inc would acquire all of Silicon Valley Bank's deposits and loans from the regulator. The Japanese yen strengthened 0.54% versus the greenback at 130.94 per dollar .Strong resistance can be seen at 131.00(Psychological level), an upside break can trigger rise towards 132.80 (38.2%fib).On the downside, immediate support is seen at 130.32(23.6%fib), a break below could take the pair towards 129.21(Lower BB).
Equities Recap
European stocks rose on Tuesday as investors grew hopeful that the banking crisis will be contained after a buyout deal for the failed Silicon Valley Bank.
At (GMT 12:22 ),UK's benchmark FTSE 100 was last trading up at 0.06 percent, Germany's Dax was up by 0.10 percent, France’s CAC was up by 0.12percent.
Commodities Recap
Crude prices firmed on Tuesday, extending sharp gains from the previous session amid supply disruption risks from Iraqi Kurdistan and hopes that turmoil in banking is being contained.
Brent crude futures gained 61 cents, 0.8%, to $78.73 a barrel by 1006 GMT. West Texas Intermediate U.S. crude was up 53 cents, or 0.7%, to $73.34 a barrel.
Gold prices dipped for a third straight session on Tuesday, retreating further from the key $2,000 mark, with investors turning towards higher-risk assets as banking turmoil subsides, although a softer dollar limited losses.
Spot gold was down 0.2% at $1,951.80 per ounce, as of 0924 GMT. U.S. gold futures fell 0.1% to $1,952.10. Last week, gold breached the $2,000 level after bank contagion fears bolstered safe-haven flows.