Market Turbulence Returns as Deutsche Bank Shares Plummet, Shaking Currency Markets
| Action Insight Mid-Day Report 3-24-23 |
Market Turbulence Returns as Deutsche Bank Shares Plummet, Shaking Currency Markets |
The European session has been marked by a resurgence of market turbulence as Deutsche Bank shares nosedive, fueled by a surge in its credit default swaps. This development has had a domino effect on major European indexes and US futures, both experiencing significant drops. Investors are seeking refuge in bonds, driving the US 10-year yield towards 3.3% and Germany's 10-year yield notably below 2.1%. In the realm of currency, Yen is enjoying a broad rally, keeping company with Dollar and Swiss Franc. On the other hand, the Euro is taking a plunge, erasing most of its week's gains. Australian and New Zealand Dollars find themselves in an even more precarious situation, with Sterling and Canadian Dollar showing mixed performance. Market responses to today's economic data have been rather tepid. From a technical perspective, the sharp descent of EUR/CHF implies that the rebound from 0.9704 might have already reached its zenith at 0.9995. As Credit Suisse encountered challenges last week, funds seemed to flow from Swiss Franc to Euro. However, with Deutsche Bank now in hot water, funds are making their way back to the Franc. The critical question is whether the 0.9856 minor support can hold its ground before the weekly close. In Europe, at the time of writing, FTSE is down -1.67%. DAX is down -2.28%. CAC is down -2.23%. Germany 10-year yield is down -0.1312 at 2.062. Earlier in Asia, Nikkei dropped -0.13%. Hong Kong HSI dropped -0.67%. China Shanghai SSE dropped -0.64%. Singapore Strait Times dropped -0.20%. Japan 10-year JGB yield dropped -0.035 to 0.276. |
AUD/USD Mid-Day Report Daily Pivots: (S1) 0.6652; (P) 0.6704; (R1) 0.6737; More... Break of 0.6648 minor support argues that AUD/USD's recovery from 0.6563 has completed at 0.6758, ahead of 55 day EMA. Intraday bias is back on the downside for 0.6563 low and 0.6546 fibonacci level. Decisive break there will resume whole fall from 0.7156 and carries larger bearish implications. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:00 | AUD | Manufacturing PMI Mar P | 48.7 | 50.5 | | 22:00 | AUD | Services PMI Mar P | 48.2 | 50.7 | | 23:30 | JPY | CPI Y/Y Feb | 3.30% | 4.10% | 4.30% | | 23:30 | JPY | CPI ex-Fresh Food Y/Y Feb | 3.10% | 3.10% | 4.20% | | 23:30 | JPY | CPI ex Food & Energy Y/Y Feb | 3.50% | 3.40% | 3.20% | | 00:01 | GBP | GfK Consumer Confidence Mar | -36 | -35 | -38 | | 00:30 | JPY | Manufacturing PMI Mar P | 48.6 | 48.2 | 47.7 | | 07:00 | GBP | Retail Sales M/M Feb | 1.20% | 0.20% | 0.50% | 0.90% | | 07:00 | GBP | Retail Sales Y/Y Feb | -3.50% | -4.70% | -5.10% | -5.20% | | 07:00 | GBP | Retail Sales ex-Fuel M/M Feb | 1.50% | 0.10% | 0.40% | 0.90% | | 07:00 | GBP | Retail Sales ex-Fuel Y/Y Feb | -3.30% | -4.70% | -5.30% | -5.40% | | 08:15 | EUR | France Manufacturing PMI Mar P | 47.7 | 48.2 | 47.4 | | 08:15 | EUR | France Services PMI Mar P | 55.5 | 53 | 53.1 | | 08:30 | EUR | Germany Manufacturing PMI Mar P | 44.4 | 47.1 | 46.3 | | 08:30 | EUR | Germany Services PMI Mar P | 53.9 | 51.1 | 50.9 | | 09:00 | EUR | Eurozone Manufacturing PMI Mar P | 47.1 | 48.9 | 48.5 | | 09:00 | EUR | Eurozone Services PMI Mar P | 55.6 | 52.9 | 52.7 | | 09:30 | GBP | Manufacturing PMI Mar P | 48 | 50 | 49.3 | | 09:30 | GBP | Services PMI Mar P | 52.8 | 53.1 | 53.5 | | 12:30 | CAD | Retail Sales M/M Jan | 1.40% | 0.70% | 0.50% | | 12:30 | CAD | Retail Sales ex Autos M/M Jan | 0.90% | 0.60% | -0.60% | | 12:30 | USD | Durable Goods Orders Feb | -1.00% | 0.40% | -4.50% | | 12:30 | USD | Durable Goods Orders ex Transportation Feb | 0.00% | 0.20% | 0.70% | | 13:45 | USD | Manufacturing PMI Mar P | 47.3 | | 13:45 | USD | Services PMI Mar P | 50.6 |
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