Date : 22nd March 2023.

Market Update – March 22 – Stocks build a rally ahead of Banks!

Trading Leveraged Products is risky

Stocks Rallied! Asian stock markets have followed Wall Street higher, GER30 and UK100 futures are also posting slight gains, while US futures are narrowly mixed as markets wait for the FOMC announcement later today. Even though concern over global financial stability is easing and risk appetite has improved, with central banks expected to tighten policy further there is still some nervousness ahead of the announcement, as fears that aggressive action will add further pressure continue to weigh.

UK inflation surged higher ahead of BoE.

The data came in much higher than anticipated, with CPIH rising to 9.2% y/y from 8.8% y/y, while CPI hit 10.4% y/y. Most worrying for policymakers will be the jump in core inflation – from 5.8% y/y to 6.2% y/y. The data will likely force the BoE’s hand tomorrow and another rate hike looks much more certain now than before the release.

*FX – USDIndex has corrected to 102.75 as Treasury yields declined. EUR corrected to 1.0760 but still in an upchannel. JPY weakened for a 2nd day, while it is now holding at 132.50. Sterling jumped after data to 1.2283.
*USDCAD popped to 1.37 on the cooler Canadian Inflation, from a 1.3654 low, but has dipped back to 1.3662 currently.
*Stocks – US100 advanced 1.6%, the US500 is up 1.3% and the US30 added 316 points, +1%. First Republic shares surged 29% while KeyCorp, US Bancorp, Truist Financial and Comerica picked up about 9% each by the close. Those five were also the top gainers on the US500 for the day.

*Commodities – USOil – has snapped a two day run higher and is currently at $69.50.
*Gold – Evening Star Formation ? Gold slumped back to $1934 as yields on the 10-year government bond jumped Tuesday, making it more appealing to hold Treasuries than Gold.
*Cryptocurrencies – BTC holds around $28K highs.

Today - ECB Lagarde speech, FOMC began its meeting, 25 bp hike expected, focus on dot plot!

Biggest FX Mover @ (07:30 GMT) GBPCHF(-0.56%). Jumped to 1.1334 reversing half of yesterday’s losses! MAs aligned higher, MACD histogram & signal line remain negative, RSI 57 and rising.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.