Here’s what to know on Tuesday, March 28:
After a quiet start to the week, market participants will continue to assess the consequences for the economy of the banking crisis. Major economic reports to be released in Asian time include Australian Retail Sales, ahead of Wednesday’s CPI and next week’s RBA meeting.
The markets showed some relief on Monday after the latest banking news, which caused a rebound in bank shares. The Dow Jones gained 194 points or 0.60%, while the Nasdaq fell 0.46%. The VIX continued its downward trend and crude oil rose more than 5%. Deutsche’s holdings rallied and First Citizens Bancshares agreed to buy parts of Silicon Valley Bank (SVB).
He DXY lost ground on Monday and fell below 103.00, despite US yields rising (curve still inverted). The 10-year US Treasury yield rose towards 3.55%, while the 2-year yield was back above 4.00%. The Japanese yen was one of the currencies hardest hit by improving market sentiment and rising yields in Europe and the United States. USD/JPY rose more than a hundred points, surpassing 131.50.
He EUR/USD is moving with a bullish bias, inching towards 1.0800. Still, it looks likely to consolidate ahead of key inflation data from the Eurozone on Thursday (March preliminary Consumer Price Index) and from the US on Friday (February Core Personal Consumption Expenditure).
GBP/USD rose slightly thanks to the weakness of the dollar, approaching 1.2300. USD/CHF fell from near 0.9200 to 0.9155.
AUD/USD it moves sideways in a small range near 0.6650. On Tuesday, Australia will report on Retail Sales. The NZD/USD pair traded below 0.6200, with the Kiwi underperforming.
The Loonie was the best among the commodity currencies. USD/CAD lost more than 50 points and posted the lowest daily close in three weeks, holding above the critical support zone of 1.3645/50. The federal budget will be published on Tuesday.
Emerging Market currencies were mixed. He Colombian peso and the Chilean peso they behaved better on Monday. By contrast, the South African rand fell across the board, losing 0.85% against the US dollar.
He Gold fell more than $20 and stood at around $1,950/oz. Bitcoin fell more than 3%.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
