The markets continued to stabilize on Tuesday, despite the fall on Wall Street. Bank fears ease as attention turns to inflation data. The dollar remained weak and fell for the second day in a row, despite the rebound in US yields. Australian inflation numbers will be critical on Wednesday ahead of the next RBA meeting. On Thursday, the Eurozone countries will publish the CPI figures and on Friday the United States will publish the core CPI.
Here’s what to know on Wednesday, March 29:
Wall Street ended lower, with the S&P 500 shedding 0.2% and the Nasdaq Composite losing 0.5%. This time it was not the banking sector, but the technology sector, that pushed US stocks lower. The banking crisis eased further and financial markets continued to settle.
The DXY fell 0.40%, posting the lowest close since early February below 102.50. Even rising US yields didn’t help the dollar. The 10-year US Treasury yield stood at 3.56% and the 2-year yield was above 4.05%.
US Consumer Confidence (CB) improved in February, with the main index rising from 103.4 to 104.2. The key report will be released on Friday with the Staple Personal Consumption Expenditure Price Index.
The pair EUR/USD held firm above 1.0800 and is about to test 1.0850. Expectations that the European Central Bank (ECB) will continue to raise rates are offering support to the euro. Inflation data for the Eurozone countries will be published on Thursday.
He GBP/USD consolidates above 1.2300 after failing last week. UK credit data on Wednesday will show how the tightening cycle is affecting lending.
The pairAUD/USD it is testing levels above 0.6700 and is trading at the highest level since last Thursday. Australian Retail Sales rose 0.2% in February, below the 0.4% market consensus. On Wednesday the monthly Consumer Price Index will be published (consensus: 7.1% year-on-year). The figures will be key to next week’s Reserve Bank of Australia (RBA) meeting, which could raise rates further or pause. The figures are also relevant for the Kiwi. The NZD/USD stands at 0.6250.
He USD/CHF remains sideways, unable to break above 0.9200. The Swiss franc was one of the worst performing currencies on Tuesday. EUR/CHF rose a hundred points, approaching parity. The Swiss National Bank (SNB) will publish its Quarterly Bulletin on Wednesday.
He Gold found support above $1,950 and rose to $1,975, while silver posted its highest close in almost two months above $23.30. WTI gained 0.85%, advancing to its highest level in two weeks above $73.30.
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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.