Wall Street is euphoric over the news of UBS’s purchase of Credit Suisse and coordinated central bank action. Due to the purchase made, there has been an improvement in the trading market and banking system.
- The Dow Jones has earned more than 1%
- The U.S. yield is rebounding toward 3.50%
- The CBOE Volatile Index has fallen by almost 6%
- S. Dollar Index has fallen by 0.54%
The forex market has responded to the development in market sentiment. There will be significant changes in the next trading sessions depending on the development of the Federal Reserve’s meeting and the banking sector. The U.S. central bank is in a complex position as the market is pricing at a 70% probability of a 25-basis points rate rise.
Forex Market Analysis
GBP/USD is breaking its 5-day trading range as it is rising above 1.2270; since February, this is its highest. The Bank of England will declare the monetary policy decision on Thursday.
The Kiwi is one of those with worse performers, with NZD/USD receding to 0.6230 from its monthly highs. AUD/USD is confining above 0.6700 after recoil at 0.660.
Canada will release February’s Consumer Price Index, which was determined to rise 0.6%. USD/CAD declined, identical to last week’s low at 1.3650, a key support area assisted by the 20-day Simple Moving Average (SMA).
Gold is balanced around $1980 on a buoyant session, including a one-year high above $2000 and an improvement to $1,965. Bitcoin has dropped reasonably to $28,000 in a session it attained a nine-month high. Crude oil prices have increased by 2% and rejuvenated after hitting their lowest in December 2021.
The European Central Bank President spoke at the European Parliament, stating that inflation is considered to remain high for a long time. In Germany, the Producer Price Index has increased by 15.8%. EUR/USD has increased above 1.0700. EUR/CHF has expanded its journey near the previous inventory adjustment area, which will lead to a grand sell-off. The inventory adjustment area is in a category of 0.9923-0.9967, and this serves as a territory where the assets were depleted most of the time in its previous move. The Exponential Moving Average is 0.9940 and will still support the Euro bulls. The bullish momentum is also active.