Bank jitters continue to ease lifting sentiment again, US stocks rallied (+1% to +1.79%) led by the NASDAQ, Asian markets are mixed and European FUTS are positive. The USD bounced 0.2% but has eased overnight and Yields drifted sideways. Earnings beats from Micron (+7.19%) & Lululemon (12.72%) were upbeat surprises too. The YEN continues it’s volatile week as the Japanese financial year end looms. AUD recovers from yesterday’s weaker performance. US Pending Home Sales were better than expected (+0.8% -2.9%) and Oil Inventories significantly lower (-7.5M vs +1.8M) the Fed’s Barr continued to claim that “many were to blame for Silicon Valley Bank failure”.
Overnight: German CPI North Rhine Westphalia (many more States to follow during the day) March CPI +6.9% vs +8.5% prior.
- FX – USDIndex recovered 0.2% yesterday but remains capped at 102.50, trading at 102.25 now. EUR holds over 1.0800 to trade at 1.0840 now. JPY continued its volatile week rallying from under 131.00 to 132.50 now, Sterling plotted a 39-day high yesterday at 1.2360, before receding to 1.2325 now.
- Stocks – US markets rallied lead by tech stocks yesterday (+1.00% to +1.79%) #US100 entered a technical bull market after gaining +20% from its December low and the #US500 closed above 4000 and also over its 50SMA for the first time in over three weeks. Major movers also included INTEC +7.61% & AMZN +3.1%. US500 +1.42% (+56.54) to 4027, US500 FUTS also higher at 4066, breaking & breaching key 4050 resistance.
- Commodities – USOil – Futures declined from $74.00 after EIA Inventories and trades at $73.60 now. Gold – dipped to $1955 once again, and trades at $1965 now.
- Cryptocurrencies – BTC has breached $29k today and holds $28.5k again.
Today – Swiss KOF Indicator, EZ Consumer Confidence, German CPI, US Weekly Claims, Q4 GDP & PCE Prices, Banxico & SARB Policy Announcement, CBRT Minutes, Speeches from Fed’s Barkin, SNB’s Maechler & Moser.
Biggest FX Mover @ (07:30 GMT) EURNZD (-0.30%). Rallied from 1.7300 yesterday to big DAILY resistance at 1.7450 today before turning lower to break 1.7400. MAs aligning lower, MACD histogram & signal line positive but falling, RSI 45.90 & falling, H1 ATR 0.00189, Daily ATR 0.01695.
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Stuart Cowell
Head Market Analyst
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