US CPI, Banking Crisis, Forex, Indices, Gold, Crypto, & MORE | Eightcap Trade Zone Weekly Market Wrap

March 17, 2023
by Joseph Jeffriess, Market Analyst

The banking saga deepened this week and looked like all hell could have been about to break out after Credit Suisse was added to the list. Wednesday looked ominous as traders flew out of risk assets, and we saw the JPY jump. European indexes were slammed as it looked like a contagion had spread to Europe.

The Swiss National Bank came to the party, and the news hit that CS had secured a 50-plus billion loan from the SNB. This looked to cool neves with other US government actions, and stocks recovered on Thursday. Pre-SNB loan CS dropped 30% after the news. It was up around the same amount!

It was hard to look past the banking issues, but we did also see US CI come in as expected and PPI come in just below. US retail sales also missed, and Australian employment data came in firmer, adding to our own local rates dilemma. The UK budget was another overshadowed event, and the minister said the UK should miss a recession in 2023 and ushered in spending and tax plans.

Gold continued its safe haven run, but oil dipped below $70. Could this stir up OPEC? Crypto surged this week. Bitcoin was defiantly the star, as it broke February highs and retested 26K.

Next week we will be watching the Fed. Will the banking saga change policy? Rates are still seen as increasing by 25 pts, but more talk is hoping for a hold.

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