It is not only the Fed this time but also the US Banks and more precisely the SVB Financial Group SIVB which drifted by -60.41% yesterday. Shares of SVB, the parent of Silicon Valley Bank, disclosed the loss and sought to raise $2.25 billion in fresh capital by selling new shares. The 4 biggest US banks lost $47 bln in Market Value! (BoA, Citi, JP Morgan, Wells Fargo). Jobless Claims unexpectedly ticked up. Germany February final CPI remains sticky at +8.7% vs +8.7% y/y prelim. UK January monthly GDP +0.3% vs +0.1% m/m expected.
Overnight: BoJ left policy unchanged, as universally anticipated, in Governor Kuroda’s final meeting. The policy rate was left steady at -0.1%, along with a 0.5% cap on the 10-year JGB yield (YCC).The vote was a unanimous 9-0. JGB & Nikkei (-1.67%) sinks overnight, the Kuroda swansong maintains Yield Curve Control with no tweaks and outlook remains as Dovish as ever. China's Xi Jinping takes third term as President with eye on US.
Today – NFP and Canadian Labor data!
Biggest FX Mover @ (07:30 GMT) VIX(+18%). Spiked to 22.42. MAs are now flat, MACD histogram & signal line remain well above 0, RSI 79 but flat, Stochastics falling, H1 ATR 0.36, Daily ATR 1.24.
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Andria Pichidi
Market Analyst
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