America’s Roundup: Dollar rises against Japanese yen as bank fear eases ,Wall Street ends higher, Gold slips, Oil rises over $3 on Kurdistan export halt, banking optimism-March 28th,2023

Posted at 27 March 2023 / Categories Market Roundups

Market Roundup

•French 6-Month BTF Auction 2.946%,2.823% previous

•French 12-Month BTF Auction 3.046%, 2.760% previous

•French 3-Month BTF Auction 2.804%,2.613% previous

•US Mar Dallas Fed Mfg Business Index -15.7,-13.5

 •US 3-Month Bill Auction 4.675%,4.675% previous

•US 6-Month Bill Auction 4.650%,4.620% previous

•US 2-Year Note Auction 3,.954%4.673% previous

Looking Ahead Economic Data (GMT)

•00:30  Australian Feb  Retail Sales (MoM)   0.1% forecast,1.9% previous

•01:30 China Feb  Chinese Industrial profit (YoY) 0.80% previous

•05:00 Japan BoJ Core CPI (YoY) 3.5% forecast, 3.1% previous

Looking Ahead   Events and Other Releases (GMT)

• 04:00  Japan  BoJ Governor Kuroda Speaks      

Currency Summaries

EUR/USD: The euro edged up against dollar on Monday  as reduced worries about global banking crisis and upbeat German business morale data boosted euro. German business morale unexpectedly rose in March, adding to signs that Europe's largest economy is stabilizing despite recent turmoil in the banking sector, a survey showed on Monday.The Ifo institute said its business climate index jumped to 93.3 from a reading of 91.1 in February. The euro was up 0.1% to $1.0777, after falling 0.6% on Friday. Immediate resistance can be seen at 1.0799(5DMA), an upside break can trigger rise towards 1.0874(Higher BB).On the downside, immediate support is seen at 1.0721(38.2%fib), a break below could take the pair towards  1.0668(Feb 13th low).

GBP/USD: Sterling edged higher on Monday, with investors' appetite for risky assets returning as they awaited a speech from Bank of England (BoE) governor Andrew Bailey later in the day.News of a buyer being found for deposits and loans at Silicon Valley Bank in the U.S. cast an uneasy calm over markets on Monday, which have been shaken recently by fears of a credit crunch and systemic bank stress. Bailey delivers a speech at the London School of Economics today at 1700 GMT and tomorrow at a Treasury Select Committee hearing on Silicon Valley Bank Sterling rose 0.16% against the euro to 87.85 pence per euro   and 0.2% versus the dollar   to $1.2252. Immediate resistance can be seen at 1.2353 (23.6%fib), an upside break can trigger rise towards 1.2381(Higher BB).On the downside, immediate support is seen at 1.2207 (11DMA), a break below could take the pair towards 1.2166(38.2%fib).

 USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, notching up its biggest advance in two weeks, as signs of easing stress in the banking sector contributed to a surge in oil prices. U.S. crude oil futures settled 5.1% higher at $72.18 a barrel on hopes that banking sector issues would be contained and after Iraq was forced to halt some crude exports from its semi-autonomous Kurdistan region. The Canadian dollar was trading 0.7% higher at 1.3655 to the greenback, or 73.23 U.S. cents, its biggest gain since March 13. It moved in a range of 1.3653 to 1.3745. Immediate resistance can be seen at 1.3701 (5DMA), an upside break can trigger rise towards 1.3744(23.6%fib).On the downside, immediate support is seen at 1.3659(38.2%fib), a break below could take the pair towards 1.3581 (50%fib).

USD/JPY: The dollar rose to a five-day high against the Japanese yen on Monday as authorities' efforts to rein in worries over the global banking system helped soothe investor nerves. 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. Easing worries helped the dollar rise 0.77% to 131.75 yen, reversing some of its recent losses against the Japanese currency. Strong resistance can be seen at 132.00(Psychological level), an upside break can trigger rise towards 132.90 (38.2%fib).On the downside, immediate support is seen at 130.20(5DMA), a break below could take the pair towards 130.50(23.6%fib).

Equities Recap

European stocks climbed on Monday, as a sense of calm returned to markets following a week of turbulence over concerns about banking sector stability after the collapse of Credit Suisse and two U.S. mid-sized lenders.

 UK's benchmark FTSE 100 closed up by 0.90 percent, Germany's Dax ended down  by 1.14 percent, France’s CAC finished the day up by 0.90 percent.

U.S. stocks closed higher on Friday, marking the end of a tumultuous week as Federal Reserve officials calmed investor fears over a potential liquidity crisis in the banking sector.

Dow Jones closed up  by  0.60% percent, S&P 500 closed up by 0.16% percent, Nasdaq settled up by 0.47 %  percent.

Commodities Recap

Gold prices fell more than 1% on Monday as worries over a crisis in the banking sector subsided, prompting investors to scale back safe-haven trades in favour of riskier assets like equities and crude oil.

Spot gold dropped 1.2% to $1,952.95 per ounce by 2:10 p.m. EDT (18:10 GMT). U.S. gold futures settled 1.5% lower at $1,953.80.

Oil prices rose more than $3 on Monday as a halt to some exports from Iraq's Kurdistan region added to worries about oil supplies while a U.S. banking acquisition eased worries that financial turmoil could hurt the economy and curtail fuel demand.

Brent crude futures settled up $3.13, or 4.2%, at $78.12 a barrel. West Texas Intermediate U.S. crude closed $3.55, or 5.1%, higher at $72.81.

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