Forex News for 20 March, 2023
March 20, 2023 128 Views
- Today in the Forex market, the Euro and Japanese Yen are demonstrating strength, whereas the New Zealand Dollar is weak.
- The New Zealand Dollar is facing pressure due to last week’s worse-than-expected GDP data, which showed a quarterly shrinkage of 0.6%, compared to the anticipated 0.2% decline.
- Credit Suisse was saved from failure by a $54 billion loan from the Swiss National Bank, allowing UBS to acquire the struggling bank. However, the deal wiped out $17bn worth of Credit Suisse bonds and created unrest in the corporate bond and banking markets.
- The Hang Seng Index fell to a new 3-month low price, and US stock futures were broadly lower.
- The focus is now on the US Federal Reserve meeting on Wednesday, with expectations of either no rate hike or only a 0.25% hike.
- Analysts believe this may be the final hike in the current cycle, as the 2-Year US Treasury Yield trades below 3.9%, much lower than the current Federal Funds rate. JPMorgan predicts a rate cut in September.
- The Japanese coast guard reported that North Korea fired another ballistic missile.
- Australian banks are robust, according to RBA official Kent, but changes to policy will take the current financial climate into consideration. FINMA’s directive to write down Additional Tier 1 (AT1) debt to zero is putting pressure on banking stock prices.
- Rightmove reports that March saw a 0.8% m/m increase in U.K. property prices, up from a flat reading in February.
- In February, producer prices in Germany decreased by 0.3% m/m, which was less than the predicted 1.3% decline and the prior 1.0% decline.