IC Markets Asia Fundamental Forecast | 22 March 2023<\/b><\/p>\n
What happened in the US session?<\/b><\/p>\n
The latest Canadian CPI data reveals a complex situation for CAD, with inflationary pressures and slowing inflation. Lower-than-expected CPI m\/m may weaken CAD, potentially delaying interest rate hikes. At the same time, higher-than-expected Median CPI y\/y and slower Trimmed CPI y\/y could offer support, indicating a more stable inflationary environment.<\/span><\/p>\n What does it mean for the Asian Session?<\/b><\/p>\n The recovery rally following the easing of the banking crisis is expected to experience a consolidation phase during the data-light session. All eyes should be resting before the critical decisions from the Fed later in the day.<\/span><\/p>\n The Dollar Index (DXY)<\/b><\/p>\n Key news events today<\/b><\/p>\n FOMC Economic Projections<\/span><\/p>\n FOMC Statement<\/span><\/p>\n Federal Funds Rate<\/span><\/p>\n FOMC Press Conference<\/span><\/p>\n What can we expect from DXY today?<\/b><\/p>\n The Federal Reserve is anticipated to increase the Federal Funds Rate by 25 basis points in light of the ongoing turbulence in the banking sector. As a result, it is expected that the tone of the FOMC Statement and the ensuing Press Conference with Chair Jerome Powell will cause market volatility. Traders will closely monitor Fed updates regarding their monetary policy outlook and any indications of how they plan to navigate the current economic climate.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/span><\/p>\n Gold (XAU)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from Gold today?<\/b><\/p>\n The anticipation of a 25bps increase in the Federal Funds Rate by the Fed will likely hurt the price of gold. Gold is often seen as a safe-haven asset, and when interest rates rise, it becomes less attractive to investors seeking higher yields.\u00c2\u00a0<\/span><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Weak Bearish<\/span><\/p>\n The Australian Dollar (AUD)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from AUD today?<\/b><\/p>\n A decline in upcoming releases of AUD MI Leading Index m\/m (-0.1%) and CB Leading Index m\/m (-0.3%) could lead to bearish sentiment for the AUD, signalling weaker economic growth and a possible economic slowdown.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/span><\/p>\n The Kiwi Dollar (NZD)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from NZD today?<\/b><\/p>\n A mixed impact is expected from the latest New Zealand data releases. The decline in the GDT Price Index (-2.6%, previous -0.7%) suggests a drop in global dairy prices, negatively affecting NZD. In contrast, the increase in Consumer Sentiment (77.7, last 75.6) indicates a positive outlook, potentially having a positive impact.\u00c2\u00a0<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/span><\/p>\n The Japanese Yen (JPY)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from JPY today?<\/b><\/p>\n As there are no major news events related to the JPY today, the currency’s price direction is expected to be influenced by the movement of the safe-haven counterpart, the US Dollar.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/span><\/p>\n The Euro (EUR)<\/b><\/p>\n Key news events today<\/b><\/p>\n ECB President Lagarde Speaks<\/span><\/p>\n What can we expect from EUR today?<\/b><\/p>\n ECB President Lagarde expressed concern about the ongoing war in Europe and the high inflation rate. The ECB staff projections predict a growth of 1.0% in 2023, which has been revised higher. Still, the recent emergence of financial market tensions implies additional uncertainty around the baseline assessments of inflation and growth.\u00c2\u00a0<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n <\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/span><\/p>\n The Swiss Franc (CHF)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from CHF today?<\/b><\/p>\n Today, there is no significant news event for the CHF, meaning Thursday’s upcoming monetary policy decisions will likely influence its direction. The policy rate is expected to increase by 50bps to 1.50%. A hawkish tone could positively impact the CHF, while a dovish one could depreciate it.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Mixed<\/span><\/p>\n The Pound (GBP)<\/b><\/p>\n Key news events today<\/b><\/p>\n CPI y\/y<\/span><\/p>\n What can we expect from GBP today?<\/b><\/p>\n The projected year-on-year CPI for the UK stands at 9.9%, slightly lower than the previous figure of 10.1%. Should the actual CPI year-on-year value meet or fall below the estimated value, inflation in the UK is likely beginning to ease, even though it remains relatively high compared to past levels. This could result in a reduced demand for GBP, as it may suggest a halt in the BoE’s interest rate hike strategy.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Weak Bearish<\/b><\/p>\n The Canadian Dollar (CAD)<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from CAD today?<\/b><\/p>\n The forecasted Canadian NHPI m\/m change is -0.1%, slightly better than the previous reading of -0.2%. This indicates that the Canadian housing market may have stabilised somewhat, which could positively impact the CAD.\u00c2\u00a0<\/span><\/p>\n Any hawkish or optimistic statements from the BOC Summary of Deliberations could strengthen the CAD, while dovish or pessimistic remarks could weaken the CAD.<\/span><\/p>\n Central Bank Notes:<\/span><\/i><\/p>\n Next 24 Hours Bias<\/b><\/p>\n Weak Bullish<\/span><\/p>\n Oil<\/b><\/p>\n Key news events today<\/b><\/p>\n No major news events.<\/span><\/p>\n What can we expect from Oil today?<\/b><\/p>\n The Fed’s anticipated 25bps increase in interest rates from 4.75% to 5.00% could affect the oil market. A stronger USD from higher rates may cause a decrease in demand and push prices down. If the Fed signals a slower rate hike path, the USD may weaken, increasing demand and prices.<\/span><\/p>\n Next 24 Hours Bias<\/span><\/p>\n Mixed<\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" IC Markets Asia Fundamental Forecast | 22 March 2023 What happened […]<\/p>\n","protected":false},"author":8,"featured_media":56102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[196,215],"tags":[],"class_list":["post-57354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis","category-market-analysis"],"_links":{"self":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/comments?post=57354"}],"version-history":[{"count":1,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57354\/revisions"}],"predecessor-version":[{"id":57355,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57354\/revisions\/57355"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media\/56102"}],"wp:attachment":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media?parent=57354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/categories?post=57354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/tags?post=57354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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