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Forex Today: Markets do a 180 degree turn again, focus on the ECB

This is what you need to know to trade today Thursday March 16:

Following the intense flight to safety triggered on Wednesday by fears that Credit Suisse would go under without additional financial support, market sentiment appears to have started to improve early on Thursday. The European Central Bank (ECB) will announce its monetary policy decisions throughout the day, and the US economic calendar will publish data for February on housing starts, building permits and the Bank’s March manufacturing survey. from the Federal Reserve Bank of Philadelphia.

ECB preview: Nervousness in the banking sector gives arguments to the pigeons

Bloomberg reported early Thursday that the president of the Saudi National Bank, Credit Suisse’s biggest investor, Ammar Al Khudairy, said the panic surrounding the bank was unjustified. Al Khudairy added that regulators were prepared to “plug holes when they appear”, while noting that the bank was unlikely to need more capital. More importantly, the Swiss National Bank (SNB) and the Swiss Financial Markets Supervisory Authority (FINMA) released a statement late on Wednesday stating that Credit Suisse met the capital requirements imposed on banks and that They would provide liquidity if necessary. After losing more than 3.5% on Wednesday, the Euro Stoxx 50 was up more than 1% in pre-market trading. In addition, Credit Suisse shares are reportedly up more than 20% at the open on the Swiss stock market.

Meanwhile, the Dollar Index, which rose more than 1% on Wednesday, is undergoing a technical correction and is trading in negative territory around 104.50 points. The 10-year US Treasury yield is up more than 1% on the day after Wednesday’s sharp decline. Finally, US stock index futures are up marginally early in the European session.

He EUR/USD it lost more than 150 points on Wednesday and approached 1.0500 before bouncing. At time of writing, the pair is trading a few points above 1.0600, up 0.3% on the day.

He GBP/USD it fell towards 1.2000 during US trading hours on Wednesday, but managed to erase some of its daily losses before the end of the day. The pair is relatively quiet early Thursday and is trading in a tight range below 1.2200.

Despite the overall strength of the US dollar, he USD/JPY closed in negative territory, as the Japanese yen found demand as a safe haven. As of early Thursday, the pair remains lower and is trading in negative territory around 133.00.

In the Asian session, data from Australia showed the country added 64,600 jobs in February, better than the market expectation of 48,500. The unemployment rate dropped from 3.7% to 3.5% and the participation rate improved slightly from 66.5% to 66.6%. Other data revealed that expectations for consumer inflation in March fell to 5% from 5.1% in February. The pair AUD/USD gained ground on the data and rose 0.5% on the day, settling around 0.6650.

XAU/USD took advantage of falling global bond yields on Wednesday and gained almost 1%. The price of gold it dipped amid the recovery in yields early Thursday and was last seen trading below $1,920.

Bitcoin It snapped a three-day winning streak and lost more than 1% on Wednesday. The BTC/USD pair appears to have regained traction early Thursday and is now up 1.3% at $24,700. ethereum it fell almost 3% on Wednesday, but managed to shake off the bearish pressure in the European morning, recovering towards $1,700.

Source: Fx Street

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