Forex News Roundup for 13 March, 2023

My FX List
March 13, 2023
  • The US Treasury, in collaboration with other regulatory agencies, recently announced a “backstop” plan to serve as the last resort lender for all bank deposits in the US, including those not covered by the FDIC.
  • This news led to a reversal in the market, with stock markets experiencing significant gains. The S&P 500 Index rose by over 1.5%, while other high-risk assets also saw increases in value.
  • The backstop announcement caused a sharp drop in US Treasury Yields, with the 2-year and 10-year yields experiencing an unusually fast decline.
  • Within three days, the 2-Year Treasury Yield fell from over 5% to as low as 4.343%. Although the market is beginning to stabilize, it is widely believed that the banking crisis will make it challenging for the Fed to increase interest rates.
  • The US Dollar has been steadily declining in value, likely due to the difficulties the Fed is facing in raising rates. In the Forex market, the US Dollar remains the strongest major currency, while the Australian Dollar is the weakest. However, it is unclear how long this trend will continue.
  • Depositors with Silicon Valley Bank have been promised that they can access their full deposit amounts today.
  • Some commodities are performing well, with a few continuing to rise after experiencing significant bullish breakouts, particularly Sugar.
  • While there are no high-impact data releases scheduled for today, the markets are experiencing high levels of volatility due to the US banking crisis. It may be prudent for newer traders to avoid the market this week until the situation stabilizes.
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