The UBS group has made a $3 billion dollar rescue plan for Credit Suisse which has sparked more worries than ease, seeing the Japanese Yen soar continually on safe-haven demands. Traders await scheduled speeches from ECB president Christine Lagarde. Investors await interest rate decisions from central banks this week including the BoE, the Fed, and the SNB. The People’s Bank of China maintained its loan prime rate at 3.65%.
USDJPY lost -0.64% as investors ran to the Japanese Yen for safety amid the continued banking sector crisis. The dollar was weak ahead of the highly awaited Fed meeting this week where a 25 basis points hike is anticipated. The pair dropped trading near the 131.00 low as targets may be seen at 130.00 in the near term.
EURCAD seesawed around the 1.4650/1.4600 region following better-than-expected German data. The German producer price index rose -0.3% from -1.2% beating expectations of -0.5% on a month-on-month basis in February. Later in the day, European Central Bank President Christine Lagarde will be speaking following a negative trade in the zone which settled at -30.6 billion against an expected -12.5 billion.
Inflation figures in Canada are due for release on Tuesday with the headline inflation surveyed to drop to 5.4% from 5.9%. Further down the pair may reclaim 1.4500. However, a rally to the upside may give sellers 1.4865.
GBPAUD rallied +0.50% as traders await inflation data and BoE rate decision from the UK. Inflation in the country has been anticipated to ease to 9.8% from 10.1% on a year-on-year basis. The pair traded above the 1.8150 mark as 1.8400 may be a challenge for buyers on the bullish run.
European stocks pared early trade losses ahead of President Lagarde’s speech. The UK100 rose +0.62% after bouncing off the 7200 low as buyers got capped at the 7400 high. The CAC40 gained +0.77% as bears got rejected at the 6800 low as buyers were challenged by a 7000 psychological high. The DAX in Germany was up +0.48% above the 14500 mark as bulls may struggle to move above 15000.
US stock futures traded higher after opening a gap higher as the financial crisis loomed. As of 11:00hrs GMT, the Nasdaq100 futures were flat at +0.06% trading between a 12600 high and a 12400 low. S&P 500 futures had +0.05% gains above the 3900 mark. The DJIA futures rose +0.04% as bears may be challenged by 31400 on the downside and 32500 on the rally.
Elsewhere in cryptocurrency, bitcoin soared as investors sought the crypto as an alternative to the financial system amid the domino effect in the banking sector. BTCUSD was up +0.48% as a move above $28800 may give up the $30000 psychological high.