NFP | Banking Crisis | US CPI | Gold | Crypto | Trading Outlook – 14.03.23

March 14, 2023
by Joseph Jeffriess, Market Analyst

US banking crisis sends a few shock waves through the markets.

Hi traders, thanks for your time today. As you would have seen since last week, Sivergate wound up operations, and this set off a contagion that hit Silicon valley bank and, most recently, Signature bank. This has become the most significant banking failure since the GFC.

The fallout saw US and global equities tumble. Selling has continued into this week. The DOW and SP500 took the brunt of the shock waves, but this also spilt over into local markets, with the ASX taking a beat down. Better news has started to emerge, the US president announced an emergency backstop for deposits at struggling banks. Combine this crisis with a higher-than-expected NFP, and hasn’t been great for equities.

Some of the biggest movers have been equities pushing lower and crypto and gold flying higher. The USD was also nailed due to fear around the banking sector, and this set off a few bank runs in the states.

ETH and BTC have seen dramatic gains since the 11th, both coins pulling back all of the preceding move lower, and both coins came very close to testing February highs.

Gold jumped back into safe haven mode and saw 5.50% added in three sessions, resulting in both traders and investors scrambling to find something safe to park their funds in.

In today’s video, we have run over the lead-up and the moves and are looking at tonight’s CPI data. Yes, it’s definitely overshadowed by recent events, but we still feel it’s important in the short term. Calls are emerging that the Fed might soften its stance to support, but if it comes in a lot hotter than expected, what then?

Analysis update video 

The CPI M/M and Y/Y data will be released later today at 11:30 pm AEDT.

All times are AEST.