Business Ideas Feed – European Session March 29, 2023

Can equities maintain the early optimism this time around? So far, markets are more stable as we head into European trade, but the general conclusion is that we are still in the midst of relief as the banking turmoil eases. Overall, there are still a few key considerations to take into account and the outlook for the Fed is one of them, as discussed here.

USD/JPY is a decent move on the day, up 0.6% at 131.70 currently, but this comes after a slight decline despite higher bond yields. So I’d say it’s just a catch-up, as the charts here show:

The other major currencies aren’t doing much and perhaps heading into the end of the month and the end of the quarter there isn’t much appetite to chase firm moves. I mean, this is a time when flows can go against fundamentals, which could make things a little messy.

Elsewhere, we saw gold drop 1% on Monday to recoup most of that decline in yesterday’s trading, before falling slightly 0.3% to $1,967 currently. Meanwhile, the EUR/JPY is making a bit of a run above its 100-day moving average of 142.50 today while the GBP/JPY is running into the same technical resistance on the charts currently around 162.30 on the day.

With the focus on the bond market, yen pairs will continue to be a decent place to sniff out opportunities. But as mentioned yesterday, this could be a case of the markets bouncing around in that little box until we get to the next big headline.

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