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First Light News—Tuesday 21 March

First Light News—Tuesday 21 March, FP Markets

The FP Markets research team produce First Light News during the early hours of the European session, ensuring traders and investors have the news needed to begin their day.

 

Good morning.

US markets pencilled in gains across the board in the equity space on Monday amidst hopes of easing concerns in the banking sector. The Dow Jones Industrial Average rose 382 points (+1.20%) to 32,244, the S&P 500 gained 34 points (+0.89%) to 3,951, and the Nasdaq 100 was up 42 points (+0.34%) to 12,562. Regarding US sector performance, materials stocks added 2.1%, followed by energy and consumer staples, climbing 2.0% and 1.4%, respectively. In terms of US rates, Treasury yields recovered across the curve amid improved risk appetite; the benchmark 10-year US Treasury yield rebounded from a six-month low, underpinned technically by its key 50-week moving average at 3.395%.

Meanwhile, in other markets, we saw a rebound in oil (WTI), and spot gold (XAU/USD) shook hands with space north of $2,000 per troy ounce to test $2,009. The US Dollar Index chalked up its third day in the red, shedding 0.5%, while against the buck, the euro, the pound and the Aussie dollar all benefitted, adding 0.5%, 0.9% and 0.3%, respectively. Of note, both EUR/USD and GBP/USD printed their third successive day in the green, with the latter probing highs not seen since early February at $1.2285. The next major event for the pound, of course, is on Thursday: the Bank of England meeting, which is poised to increase rates by 25 basis points.

The price of Bitcoin moderately refreshed 9-month highs on Monday, reaching $28,578—a touch shy of weekly and daily resistances at $28,844 and $28,651.

Markets Today

The Reserve Bank of Australia (RBA) Meeting Minutes were released overnight, with the release stating that the Board recognised that monetary policy was now in restrictive territory and that the economic outlook was ‘uncertain’. Board members also agreed to ‘reconsider the case for a pause at the following meeting’, scheduled for 4 April.

Asia Pac equity indexes concluded higher overnight, taking its lead from US markets. While Japan closed its door in observance of Vernal Equinox Day, South Korea’s KOSPI and Australia’s ASX 200 gained 0.4% and 0.8%, respectively. European equity markets opened strong this morning, with banking stocks taking the lead. The FTSE 100, the DAX 40, the CAC 40 and the EuroStoxx 50 are up by 1.2%, 1.3%, 1.3% and 1.4%, respectively, while US equity index futures are also on the front foot.

Headline Events for the Day Ahead:

European Central Bank (ECB) President Christine Lagarde is Due to Speak at 12:30 pm GMT.

Annual Inflation Rate for Canada for February at 12:30 pm GMT (Expected: 5.4%; Previous: 5.9%).

Technical Take This Morning?

Of immediate note is the USD/JPY on the H1 timeframe, bound for the underside of a Harmonic AB=CD bearish pattern at ¥132.34, complemented by an H1 trendline resistance (taken from the high of ¥137.00) and trend direction: southbound.

First Light News—Tuesday 21 March, FP Markets

Major Currency Markets as of 9:05 am GMT:

First Light News—Tuesday 21 March, FP Markets

Chart: Trading View

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  • First Light News—Tuesday 21 March, FP Markets
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