Banking stocks rose across the spectrum yesterday into the Asian and European sessions, easing worries over illiquidity and any further bank runs, for now. JPY is over performing peers after yesterday’s weakness. US Stocks were mixed and the USD weaker as Treasury yields recovered across the curve, but all remain under 4%. European and US FUTS are currently higher. First Citizens Bank gained +53%, FRC +11.80%, BAC, +4.97% led the Wall Street behemoths and Oil stocks were lifted by a rise in crude prices. Andrew Bailey said too many UK workers were retiring early, EU banking regulator (EBA) warns ” risks in the financial system remain very high” following similar comments from IMF chief yesterday.
- Overnight: AUD Retail Sales (0.2% vs. 0.2% & 1.8%) & JPY Core CPI (2.7% vs 3.0% & 3.1%) both missed significantly.
- FX – USDIndex drifted lower all day yesterday and has moved down again today to 102.25 now. EUR rallied from 1.0750 support over 1.0800 and continues to rotate round this level. JPY rejected 200hr MA yesterday at 131.70, down to 130.50 ahead of JPY Inflation data, Sterling rallied over 1.2300 today and holds at 1.2325 now.
- Stocks – US markets mixed (-0.47% to +0.61%) Major movers outside the banks were GOOG -2.83% and OXY +2.53%. US500 +0.16% (+6.5) to 3977, US500 FUTS 4018 now.
- Commodities – USOil – Futures recovery continued yesterday from $70.00 to test previous support level at $73.00 today. Gold – could not hold the key psychological $2000 level on Friday & breached $1950 yesterday, back to $1955 now.
- Cryptocurrencies – BTC fell from $28k after US regulators sued Binance, & CEO Changpeng Zhao for running an “illegal” exchange and a “sham” compliance programme. Zhao called the complaint “unexpected and disappointing.” BTC dipped to $26.5K before recovering $27K.
Today – US Senate Banking Committee re. SIVB, Speeches from ECB’s Lagarde, Enria, BoE’s Bailey, Ramsden & Fed’s Barr. Biggest FX Mover @ (07:30 GMT) USDJPY (+0.67%). Rejected 200hr MA yesterday at 131.70, down to 130.50 ahead of JPY Inflation data. MAs aligned lower, MACD histogram & signal line negative & falling, RSI 45 & falling, H1 ATR 0.206, Daily ATR 1.910.