Forex News for 22 March, 2023

• Over the last 24 hours, global stock markets have seen an upward trend, with the S&P 500 Index and the NASDAQ 100 Index both experiencing strong gains ahead of the anticipated rate decision by the US Federal Reserve. In Asia, both the Japanese Nikkei 225 Index and the Chinese Hang Seng Index have also increased by over 1.5%. While banking shares are still struggling as a sector, the overall market has remained stable, with no reported bank failures in the past day.
• Additionally, US Treasury Yields have made significant recoveries, with the 2-Year yield currently trading well above 4%.
• The focus is on the US Federal Reserve’s meeting today, with many predicting a 0.25% hike, while others see the possibility of no hike at all. However, if the Fed decides not to raise rates, it’s uncertain whether this will have a positive impact on stocks.
• Bitcoin’s price remains highly optimistic, trading close to the 9-month high it reached just two days ago.
• Gold experienced a bearish retracement after reaching a new multi-month high two days ago, and it hasn’t performed as well as Bitcoin.
• In the Forex market, the US Dollar’s long-term decline within the bearish trend continued yesterday. Today, the Australian Dollar is looking to be the strongest major currency, while the Euro is the weakest.
• The Canadian headline CPI came in below expectations, showing a 0.4% month-over-month increase in February instead of the expected 0.5%. This has brought the year-over-year figure down to 5.2%.
• According to Russia’s Deputy Prime Minister Alexander Novak, the country plans to maintain its crude oil cut of 500,000 barrels per day until June 2023.
• The Japanese Chief Cabinet Secretary Matsuno has announced that the government will allocate 2 trillion JPY from reserves to address the rising prices and alleviate the impact on the economy.
• Australia’s MI leading index has recorded its seventh consecutive negative reading, posting another 0.1% month-over-month dip in February.

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