Forex News Roundup for 14 March, 2023

My FX List
March 14, 2023
  • The release of anticipated U.S. inflation data on March 14 may have an impact on the Fed’s hawkish stance.
  • The US dollar has been steadily declining over the last few days, reaching a new low that hasn’t been seen in a month. This is mainly due to the Federal Reserve’s reluctance in raising interest rates further and the growing anxiety over potential bank failures in the United States. Nonetheless, the US Dollar has somewhat recovered in the Forex market during the Asian session.
  • The Japanese Yen is exhibiting weakness while the New Zealand Dollar is showing strength. It’s important to remember that market moves are quite unpredictable, and this change runs counter to the general trend.
  • US Treasury Yields have significantly decreased as a result of the backstop announcement, with both 2-year and 10-year rates falling quickly and sharply. The 2-Year Treasury Yield plunged from almost 5% to as low as 3.99% in just four days. The market consensus is that the Fed will either not raise rates at the upcoming meeting or will merely execute a 25 bps increase.
  • The core figure may increase by 0.4%, but the year-over-year CPI may fall from 6.4% to 6.0% for the month.
  • In February, it is anticipated that the headline figure will have decreased from 0.7% to 0.3% on a monthly basis.
  • Core retail sales may decline by 0.1% after an earlier 2.3% increase.
  • Poor retail sales data may cast doubt on the consumer sector’s resilience and the Fed’s ability to maintain its tightening bias.
  • The fourth quarter of 2022 GDP data for New Zealand is anticipated to be revealed on March 15; analysts anticipate a decline.
  • If the GDP numbers reflect a 0.2% decline in the period, the RBNZ may think about pausing its tightening.
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