EUR/USD battles 1.0700 amid calmer risk tone, German ZEW eyed
EUR/USD is juggling in a narrow range just above the 1.0700 level in early Europe. The pair is sidelined amid a relatively calmer risk tone and a pause in the US Dollar decline. Markets digest the latest global banking sector developments ahead of Germany's ZEW survey.
GBP/USD remains pressured around 1.2250 as US Dollar recovers
GBP/USD is on a corrective move lower while testing 1.2250 in the early European morning. A broad rebound in the US Dollar is weighing on the pair, despite a better market mood. Investors stay cautious amid the global banking woes and ahead of the Fed decision.
Gold lingers below the $2,000 mark as the market awaits Fed’s policy decision
Gold price reached a fresh yearly high on Monday this week, with XAU/USD hitting the $2,000 mark for only the third time in recorded history; the last time was during the COVID era. The robust bull run began from the March low of around $1,800, and gold prices have not looked back since.
Coinbase argues core staking services are not securities in its letter to SEC
Coinbase submitted a comment letter to the US financial regulator asking for clarification on core staking services. The exchange explained that staking services fail every single prong of the Howey test, therefore, cannot be treated as securities.
FX thoughts for the week
Do central banks face a conflict between their inflation mandate and financial stability? The markets are still grappling with this question and confidence in the financial sector has not fully recovered. For now, central banks are responding with a conditional no.
DEEPER DIVE
Silicon Valley Bank – What happened, and why is it so crucial for the markets?
The American SVB has become officially bankrupt. The collapse happened so quickly that it was hard to believe the reality of what was happening.
Will Gold prices break new all-time record highs this week?
There is no denying that March has certainly started off with a bang – bringing with it a series of highly lucrative money making opportunities from re-accelerating inflation.
Week Ahead – Fed decision to fuel volatility in nervous market
With cracks appearing in the US banking system, markets think there’s a chance the Fed won’t raise rates next week. The most likely outcome is a rate increase accompanied by high rate projections
FXS Signals
Technical Confluences Detector
Gold forges bullish path above $1,960, Fed, banking turmoil eyed
Gold price regains upside momentum, following the pullback from a Year-To-Date (YTD) high, amid cautious optimism surrounding the banking sector. Adding strength to the recovery moves could be the market’s inaction amid the Japanese holiday, as well as the failures on the part of the US Treasury bond yields to extend the recent corrective bounce off a six-month low.
Key levels to watch
As per Technical Confluence Detector, Gold price trades successfully beyond the $1,960 support confluence, despite the latest inaction, which in turn keeps the XAU/USD buyers hopeful. That said, the stated key support comprises Fibonacci 23.6% on one-week, previous monthly high and Pivot Point one-day S1.
That said, Fibonacci 23.6% on one-day and 50-HMA levels restrict immediate downside of the Gold price near $1,976 and $1,965-66 in that order. It's worth mentioning that the $1,940 acts as the key downside support, apart from the $1,960, which could challenge the XAU/USD bears.
CRYPTOCURRENCIES
Mastercard to settle stablecoin transactions in Asia-Pacific region with Australian platform
Stablecoins have long been considered the safer option for bringing crypto to the world. However, the recent few instances of stablecoin collapses have raised concerns regarding the same as well. Even so, Mastercard is attempting to widen its reach in the Asia-Pacific (APAC) region.
How IMX could respond to Immutable's new partnership with Polygon Labs as gaming tokens trend this week
Immutable X and Polygon Labs have partnered for Web3 game development acceleration. The partnership comes ahead of launching a zkEVM-powered platform for studios and developers and a day into the GDC. The news could fuel a 43% upswing for IMX as the hype around gaming tokens continues.
Bitcoin price nears $30,000 despite banking crisis; First Republic Bank crashes by 47% in a day
Bitcoin price has managed to pull itself away from the narrative of being correlated to the United States stock market and macroeconomic conditions. The biggest cryptocurrency in the world has been rallying for more than a week now despite the ongoing banking crisis in the country, which is close to bringing down another bank.
MANA eyes 21% gains thanks to the world’s largest event for the art and science of game making
Decentraland price is on a 10-day uptrend as it moves diagonally along an ascending trendline. MANA could ascend 21.68% from the current price to tag the $0.7330 resistance level last tested on February 21. The bullish thesis could be invalidated if the gaming token drops below the uptrend line at $0.6015.
THE STOCK OF THE DAY
S&P 500 Forecast: With Credit Suisse buyout behind it, market focuses on Wednesday FOMC
The S&P 500 opened up 0.4% before the open, while the Dow advanced 1% and the NASDAQ lost 0.4%. This demonstrates the market's interest in value stocks ahead of growth after last week saw a major sell-off in banking stocks.
REAL-TIME RATES
Customize your ratesWEEKLY FORECAST
EUR/USD: Between a rock and a hard place, the Fed will decide on monetary policy Premium
Financial markets were on a bumpy road this week amid concerns about the banking sector's health. The EUR/USD pair traded between 1.0515 and 1.0759 to settle above the 1.0600 mark, marginally lower from Monday’s opening.
GBP/USD: Fed, BoE and banking crisis to dictate the next direction Premium
The Pound Sterling regained the upper hand against the United States Dollar (USD), despite the global banking sector tensions. The GBP/USD pair added more than 100 pips over the week, having found strong support at the 1.2000 psychological level.
Gold: $2,000 back in crosshairs amid market turmoil Premium
Gold price started the new week on a bullish note and gained more than 2% on Monday as investors reacted to the collapse of Silicon Valley Bank (SVB) and Signature Bank.
Weekly Recap: Bank runs, stablecoin drama, Voyager bankruptcy hearing, threat to DOX Shiba Inu founder
US bank runs sent shockwaves through market participants, traders turned to Bitcoin and the “safe haven” narrative made a comeback. Binance’s $1 billion acquisition of bankrupt crypto lender Voyager is back on track with a ruling from a New York bankruptcy judge.
FX next week: Targets, EUR, DXY, GBP, JPY, AUD
EUR/USD broke the lows this week at 1.0606 and is heading to 1.0700's again for next week. Long-term target remains 1.1042 on a break of the driver averages at 1.0900's. GBP/USD must trade higher to minimum 1.2157 and target at 1.2700's on a break at 1.2500's. Oversold Pound contains a long way to travel higher.
US: Fed should not ignore recent events
Next week, the FOMC, the US Federal Reserve's monetary policy-making body, will meet. Even before the turbulence surrounding the ultimately insolvent US bank Silicon Valley Bank (SVB), the outcome of the upcoming meeting was uncertain. Expectations ranged between a rate hike of 25 or 50 bps. With the SVB bankruptcy, expectations have shifted downward
EDUCATION
Release your trading powers
Release FXStreet Premium!
Get unlimited Premium real time Analysis. Stay up to speed of the market movements and become the best forex trader ever!
