How Japan CPI and US Consumer Confidence will impact market??
Yesterday, bullion gave up some gains after dollar rose to a two-day high against the Japanese yen. As authorities’ efforts to rein in worries over the global banking system helped calm investor nerves.
Further, assurances over the crisis-struck U.S. banking sector boosted the appetite for risk assets. Resulting in reduced demand for safe havens.
On the banking front, First Citizens BancShares Inc (NASDAQ:FCNCA) said it will acquire the deposits. And loans of failed Silicon Valley Bank, closing one chapter in the crisis of confidence that has ripped through financial markets.
The Federal Reserve’s Vice Chair for Supervision Michael Barr said the central bank will be “fully accountable” for any supervisory or regulatory failures involving Silicon Valley Bank. Which was the first to fall among U.S. banks two weeks ago, triggering a domino effect.
The dollar index which measures the currency against six rivals was about flat on the day at 102.88. Not far from the near 7-week low of 101.91 touched on Thursday.
Gold prices retreated 1.26% and settled at 58526. Silver down by 0.69% at 69926.
Crude oil sparked more than 4% yesterday. It made a day’ high of 5999 and settled at 5978. As disruption of half a million barrels a day of Kurdish supply. Nuclear war talk by Russia’s Vladimir Putin and assurances about the crisis-hit U.S. banking sector helped boost risk-on appetite in oil.
From the base metals front, Copper prices drop by 1.28%. As investors worried that turmoil in the banking sector would restrict economic growth and metals demand.
Economic Data and Events for today
Japan
BOJ Gov Kuroda Speaks at 9.30am, and is expected to bring clutter for Yen.
At 10.30am – BOJ Core CPI y/y with a forecast to have a contract by 3% from 3.1%.
The above data is expect to have a positive impact on yen.
UK
At 2.15pm – BOE Gov Bailey Speaks is expected to have a volatile impact on Pound.
Eurozone
At 6.30 ECB President Lagarde Speaks and German Buba President Nagel Speaks will have a volatile impact on the Euro.
U.S.
At 6:00 PM– Goods Trade Balance with forecasts to have contraction by -90.2B. After a contraction -91.5B% in the last February Month.
At the same time, Prelim Wholesale Inventories m/m with forecast to have expanded by 0.2%, after a contraction -0.4%.
At 7.30pm – CB Consumer Confidence with forecast to have contraction by 101.0, as compared to previous month 102.9.
Richmond Manufacturing Index at same time is to be published. Forecast is seen at -10 as compared to previous reading of -16.00.
All above data is expected to have a negative impact on the dollar and positive for bullions