Forex News Roundup for 16 March, 2023

My FX List
March 16, 2023
  1. The UK economy is predicted to shrink slightly by 0.2%. The government has set a goal to reduce inflation by 50%, and according to the OBR, inflation is projected to drop from its current level of 10.7% to 2.9% by the end of 2023.
  2. On Wednesday, U.S. stocks plummeted sharply as the banking crisis worsened and spread to Europe, leading Credit Suisse Group’s shares to fall over 20% to their lowest level ever. This also caused the lender’s credit default swaps to approach the distressed area.
  3. The S&P 500, the world’s most crucial stock market benchmark, was down more than 1.5% to 3,859 at noon in New York, with financials and materials leading the decline on Wall Street.
  4. The BOJ meeting minutes indicated that members debated making further changes to its YCC program, but they decided to wait and see for now.
  5. In January and February combined, China’s fixed asset investment grew by 5.5%, exceeding the projected 4.4% growth rate and last year’s full-year growth rate of 5.1%. Retail sales increased by 3.5% y/y, as expected, marking the first growth in three months and the quickest since August 2022 and the industrial output rose from 1.3% to 2.4% y/y in January-February, missing estimates of a 2.6% rise.
  6. The latest release of US PPI and Retail Sales data came in lower than expected, suggesting a cooling economy which may take some pressure off the Federal Reserve. As a result, the market may be more forgiving if the Fed makes no rate hike or only a 0.25% hike at its next meeting on 22nd March. There are now slightly more expectations of a no-hike outcome.
  7. Bitcoin recently hit a 9-month high above $26,500 but has since undergone a significant bearish retracement. The cryptocurrency will need to re-establish itself above the key psychological level of $25k to regain its bullish momentum.
  8. Although gold has seen strong gains recently, it is currently struggling to establish itself above a critical resistance level of $1917.
  9. The US Dollar is currently falling after a rise yesterday, while the Euro appears strong today. The New Zealand Dollar is weak, partly driven down by considerably worse than expected New Zealand GDP data, which showed a quarterly decline of 0.6% compared to the expected 0.2%.
  10. Earlier today, Australian unemployment data showed a stronger than expected decline in the unemployment rate, from 3.7% to 3.5%.
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