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Trade Zone Weekly Market Wrap | AU CPI, Silvergate, Forex, Indices, Gold, Crypto, & more

Published: 03.03.2023
by Joseph Jeffriess

Welcome to this week’s wrap-up, traders!

Another week of mixed direction, but risk assets did manage to push at some gains over the week. Yes, sellers cut into gains, but the risk continues to hold some gains to USD and JPY, as do US stock indexes after some late rallies. The USD index could be on track to snap a four-week winning streak.

Gold saw a great week as the USD struggled, and inflation remains an issue. So far, we have seen all of the previous week’s losses recouped. Oil has ground higher, and buyers have touched $78.

On the rates front, fed comments suggested that inflation remains an issue and that a hot employment sector may not be the issue. We also heard that peak rates might exceed 5.1-5.4%. Local inflation was also back in focus as Australia’s CPI figure reached 7.4%, below expectations but still high. The AUD dived on the releases but quickly rallied back and finished the session higher. Rates are expected to increase by 25 pts next week, and many fixed mortgages are close to expiring, which could put a heap of pressure on those borrowers. US CB consumer confidence and US ISM manufacturing data missed. The EU estimates inflation also increased, and the ECB is expected to hike rates by 50 points at their next meeting.

Before we look at some of next week’s highlights, we have to touch on crypto today. I’m sure you noticed the sharp sell-off today. Silvergate bank has been questioned by its independent auditor and accounts. This has set off worries about the firm, leading to most major crypto players stopping business with the bank and a mass of withdrawals. Hopefully, this isn’t a contagion, and we will see things get back on track.

Next week, things pick back up data-wise: Fed testimony, Australian cash rate, Canadian rate decision, BoJ policy statement, and US employment data.

What will the RBA say about this week’s CPI? What will we hear about US inflation, and will the jobs data deliver another surprise?

Weekly Wrap Video 

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