Market Outlook

“Banking crisis in the US prompts risk aversion, with immense selloff among financial services stocks in the country.” US equities ended the lower on yesterday, spurred by rising concern over banking turmoil in the United States. Following the collapse of Silicon Valley Bank and Signature Bank, the US government and Federal Reserve stepped in to rescue the banks while agreeing to backstop

“Nonfarm Payrolls report shows a slowdown in hiring, spurring selloff of greenback.” US dollar slumped from three-months high, spurred by negative sentiment that surrounds the latest release of employment report from the United States. According to report, Nonfarm Payrolls came in at only 311,000 for the month of February. Although the latest data was higher than expected reading of

“Jobless Claims ticks up, halting greenbacks ascend temporarily.” US dollar paused its recent rally, eased slightly from three-months high after total Jobless Claims in the US implied possible softening in labour market conditions. Last week, Initial Jobless Claims rose by 211,000, slightly higher than forecast of 195,000 and the week prior’s reading of 190,000. Nonetheless, with

“Market participants waits for the release of Nonfarm Payrolls to gauge greenback’s mid-term trend.” US dollar cling onto its gains near three-months high while investors shifts their focus on US Nonfarm Payrolls report. Prior, the greenback received higher demand after Federal Reserve Chair Jerome Powell commented on potentially faster interest rate hikes to curb high inflation in the

“Testimony from Fed suggests more rate hikes due to stubbornly high inflation in the US.” Greenback hits three months high against other major currencies after Federal Reserve Chairman Jerome Powell provided his testimony. During the session, Powell commented that Fed may raise interest rates more than expected and warned that bringing back inflation to 2% will take a long time. In

“Powell testimony will bring significant impact upon US dollar’s long-term perspective.” Greenback remains subdued on Tuesday as market participants wait for testimony by Federal Reserve Chair Jerome Powell. Investors will focus on further signal from Powell with regards to Fed’s potential policy guidance in combating high inflation in the US. Although several Fed officials has voiced

“Greenback down slightly as market waits for testimony, safe haven flourishes.” US dollar remain subdued on Monday while investors wait for testimony from Federal Reserve Chair Jerome Powell for more signal with regards to future policy. Last week, investors poured into the US dollar after meeting minutes shows Fed officials in favour of prolonging rate hike period in order to curb

“Safe haven stages a rebound while market participants wait for Powell’s testimony.” Gold prices regain its upside momentum as US dollar begins to experience pullback due to depreciating Treasury bond yield. While market participants anticipates Federal Reserve to prolong its interest rate hike, they are currently waiting for more confirmation from other Fed officials especially

“The financial market remains optimistic towards Fed in initiating more rate hikes ahead.” US equities finished lower on Wednesday after key manufacturing data from US offered mixed results. According to ISM, Manufacturing PMI rose to 47.7 for the month of February, albeit lower than expected reading of 48.0. While the data came in less than expected, it provides expectation for further

“High expectations towards prolonged interest rate hike push US dollar upwards.” US dollar edges higher against other major currencies following high expectations for more interest rate hike due to stubbornly high inflation. Last week, Federal Reserve meeting minutes revealed that officials are concerned on inflation level which remains high. They conclude that a prolonged interest rate