As the North American trading session commences, the Japanese Yen (JPY) maintains its position as the strongest currency, while the New Zealand Dollar (NZD) remains the weakest. This can be attributed to the JPY's status as a safe haven in times of global economic uncertainty. The prospect of other central banks, such as the US Federal Reserve, the European Central Bank (ECB), and the Bank of England, potentially slowing down their tightening policies brings them closer to the Bank of Japan, which has maintained a stable policy throughout the global tightening process.
The Swiss Franc (CHF) has experienced a rebound after the Swiss National Bank provided support to Credit Suisse. Shares of Credit Suisse have risen to $2.27 from yesterday's low of $1.75. However, they are still down from last Friday's close of $2.66 and hovering near all-time lows. The NZD is weaker following a GDP decline of 0.6%, which was worse than the anticipated 0.2% decrease.
Australia's employment statistics have exceeded expectations, with the unemployment rate dropping to 3.5% from 3.7% last month and job growth at 64.6K, surpassing the expected 49.7K. The Euro (EUR) is mostly higher ahead of the ECB's rate decision at 9:15 AM ET, which may serve as a preview for other central banks' decisions, including the US Federal Reserve. The expectations are split between 25 and 50 basis points.
Today, several key economic indicators will be released in the US:
- Initial jobless claims: Expected at 205K, up from last week's 211K, the first release above 200K after 7 weeks.
- Philadelphia Fed Business Index for March: Expected at -15.6, up from -24.3 last month
- Housing starts and building permits: Expected at 1.310M and 1.340M, respectively
- Import and export prices: Expected at -0.2% for import prices and -0.1% for export prices
Stock markets are exhibiting mixed performance, with the Dow Jones Industrial Average down slightly and the Nasdaq up modestly. Shares of First Republic Bank continue to be under pressure, trading down 25% at $23.40. That bank is the one in the crosshairs for a potential run by depositors.
US Treasury yields are lower across the curve, and a snapshot of the market reveals the following:
- Gold: Up 0.42% at $1,925.90
- Silver: Up 1.01% at $22
- WTI crude oil: Unchanged near $67.59
- Bitcoin: Trading at $24,929, with the high price reaching $25,132
Pre-market trading for US stocks shows mixed performance following yesterday's mixed close:
- Dow Jones Industrial Average: -111 points after yesterday's -280.83 point decline
- S&P 500 Index: -7.6 points after yesterday's -27.3 point decline
- Nasdaq Composite Index: +29 points after yesterday's 5.9 point rise
European equity markets are rebounding from yesterday's sharp declines:
- Germany's DAX: +0.67%
- France's CAC 40: +1.13%
- UK's FTSE 100: +0.93%
- Spain's IBEX 35: +1.10%
- Italy's FTSE MIB: +0.46%
In the US debt market, yields are down by about four to five basis points:
- 2-year: 3.936%, -3.9 basis points
- 5-year: 3.535%, -4.8 basis points
- 10-year: 3.438%, -5.6 basis points
- 30-year: 3.619%, -6.8 basis
In the European debt market, the benchmark 10 year yields are trading higher ahead of the ECB rate decision:
