- Yesterday Markets opened up with high volatility and this continued through tNY/NYSE sessions right till markets closed for the day. This volatility was the result of fear among investor caused by the SVB collapse end of last week
where we saw shift of investors sentiment in to safe havens like Gold, JPY. DXY being a safe haven was bearish as the SVB fallout had a direct impact as it is a part of the US financial sector.
Now looks like SVB collapse sentiment has been priced in by the market as US officials and President Biden assured the depositors and citizens that swift action is being taken and solutions (Deposit Window) being put in place
regarding the SVB situation and making sure such fallouts are contained more appropriately in the future.
-JPY strength continued as market volatility was high and Safe havens being pooled with liquidity.
-We have US CPI as the main focus for Today.
FED has got in very much pressure as fear of recession and banking sector failures increased due to the SVB collapse and poor USD data it will be interesting to see if they step back or continue tightening the condition
Now, if CPI comes higher than forecast which we are expecting currently , this indicative to the FED sentiment of doing rate hikes for extened period of time Gold doing a quick liquidity grab and turning bearish with a break below 1897 cementing our bearish sentiment.
IF CPI comes out lower as forecasted (secondary expectation - adaption play), this would further fuel the pullback phase signaling the FEDS tool doing it's job to tame inflation.
This would also add more support to the rumors of FED not hiking at all in the march FOMC. this may continue the gold bullish rally above 1915 and may extend up to 1940-1945
-With the current market conditions of high volatility, it would be smart to let the dust settle before taking any trades unless you are confident in entering during high volume events but always after the data release.
where we saw shift of investors sentiment in to safe havens like Gold, JPY. DXY being a safe haven was bearish as the SVB fallout had a direct impact as it is a part of the US financial sector.
Now looks like SVB collapse sentiment has been priced in by the market as US officials and President Biden assured the depositors and citizens that swift action is being taken and solutions (Deposit Window) being put in place
regarding the SVB situation and making sure such fallouts are contained more appropriately in the future.
-JPY strength continued as market volatility was high and Safe havens being pooled with liquidity.
-We have US CPI as the main focus for Today.
FED has got in very much pressure as fear of recession and banking sector failures increased due to the SVB collapse and poor USD data it will be interesting to see if they step back or continue tightening the condition
Now, if CPI comes higher than forecast which we are expecting currently , this indicative to the FED sentiment of doing rate hikes for extened period of time Gold doing a quick liquidity grab and turning bearish with a break below 1897 cementing our bearish sentiment.
IF CPI comes out lower as forecasted (secondary expectation - adaption play), this would further fuel the pullback phase signaling the FEDS tool doing it's job to tame inflation.
This would also add more support to the rumors of FED not hiking at all in the march FOMC. this may continue the gold bullish rally above 1915 and may extend up to 1940-1945
-With the current market conditions of high volatility, it would be smart to let the dust settle before taking any trades unless you are confident in entering during high volume events but always after the data release.