<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/spain-march-preliminary-cpi-33-vs-38-yy-expected-20230330/“>Spain March preliminary CPI +3.3% vs +3.8% y/y expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/north-rhine-westphalia-march-cpi-69-vs-85-yy-prior-20230330/“>North Rhine Westphalia March CPI +6.9% vs +8.5% y/y prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/bavaria-march-cpi-72-vs-88-yy-prior-20230330/“>Bavaria March CPI +7.2% vs +8.8% y/y prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/saxony-march-cpi-83-vs-92-yy-prior-20230330/“>Saxony March CPI +8.3% vs +9.2% y/y prior</a></li></ul><p>Initial reaction:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/bond-yields-fall-after-lower-spanish-inflation-numbers-20230330/“>Bond yields fall after lower Spanish inflation numbers</a></li></ul><p>Aftermath:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/bond-yields-nudge-back-a-little-higher-as-traders-push-and-pull-20230330/“>Bond yields nudge back a little higher as traders push and pull</a></li></ul><p>Markets:</p><ul><li>CHF leads, USD lags on the day</li><li>European equities higher; S&amp;P 500 futures up 0.6%</li><li>US 10-year yields down 0.8 bps to 3.558%</li><li>Gold up 0.2% to $1,968.92</li><li>WTI crude up 0.8% to $73.58</li><li>Bitcoin up 0.9% to $28,637</li></ul><p style=““ class=“text-align-justify“>There weren’t many headlines in European morning trade today, with the focus staying on inflation numbers from German states and Spain. The early reports led to a fall in bond yields, as headline annual inflation came in softer than February and in the case of Spain, it even came in well below estimates.</p><p style=““ class=“text-align-justify“>That said, the figures do have a very important caveat to them. The spike in oil prices last year due to the Russia-Ukraine conflict is a big reason for the base effects adjustment to the readings we are seeing in March this year. As such, headline annual inflation may be lower but the core reading remains high.</p><p style=““ class=“text-align-justify“>In the case of Spain, core annual inflation is still sitting at 7.5%, down marginally from the 7.6% reading in February. Meanwhile, the monthly figures all still reflect positive price increases for all German states and in Spain as well.</p><p style=““ class=“text-align-justify“>The initial market reaction was a decline in yields, with USD/JPY also falling from 132.50 to 132.20 before recovering that drop thereafter as yields rebounded.</p><p style=““ class=“text-align-justify“>The dollar was slightly softer throughout, as equities gradually gained after a flattish handover from Asia. European indices opened higher but are now working their way up, gaining over 1% mostly across the board.</p><p style=““ class=“text-align-justify“>EUR/USD moved up from 1.0850 to 1.0880 and is sitting just below that while GBP/USD pushed from 1.2320 to 1.2363 before seeing gains ease a little after briefly hitting fresh eight-week highs.</p><p style=““ class=“text-align-justify“>The antipodeans are unable to capitalise too much, being stuck in a bit of a bind in recent weeks, with AUD/USD seen up 0.2% to 0.6695 and NZD/USD up by just 0.1% to 0.6230 on the day currently.</p><p style=““ class=“text-align-justify“>Going back to the inflation debate, this is the first month in which we will start to see the base effects adjustment come into play. I would argue that the monthly figures are going to be more important moving forward but either way, is this going to prove to be a hopeful turn or a false dawn? Only time will tell.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>European indices are keeping gains near 1% while S&amp;P 500 futures are up 16 points, or 0.4%, and that is helping with the overall mood in markets so far. In turn, the dollar is the laggard but the losses aren’t really too overwhelming. EUR/USD is up 0.2% to 1.0860 levels but is in the hunt of a fourth straight day of gains:</p><p style=““ class=“text-align-justify“>The rebound this week comes after the pair tested its 200-hour moving average on Friday last week but in the bigger picture, this is an extension of its rebound from the 100-day moving average (red line) earlier in the month. Buyers will still need to crack key resistance at 1.1000 to really justify a further upside move though, but at least they are keeping the bullish momentum going for now.</p><p style=““ class=“text-align-justify“>Meanwhile, USD/JPY is down 0.1% to 132.70 but is at least off its earlier low of 132.20 during the session – which came after the Spanish inflation data <a target=“_blank“ href=“https://www.forexlive.com/news/bond-yields-fall-after-lower-spanish-inflation-numbers-20230330/“ target=“_blank“ rel=“follow“>here</a> as bond yields sagged. But as <a target=“_blank“ href=“https://www.forexlive.com/news/bond-yields-nudge-back-a-little-higher-as-traders-push-and-pull-20230330/“ target=“_blank“ rel=“follow“>yields are recovering</a>, the pair is also getting a bit of a lift to near unchanged levels on the day currently.</p><p style=““ class=“text-align-justify“>Then, we have GBP/USD which briefly hit eight-week highs just above 1.2360 though the technical picture remains somewhat confined still as highlighted <a target=“_blank“ href=“https://www.forexlive.com/news/cable-nears-two-month-high-as-pound-holds-firmer-on-the-day-20230330/“ target=“_blank“ rel=“follow“>here</a>.</p><p style=““ class=“text-align-justify“>Elsewhere, USD/CAD is slipping further to 1.3530 levels amid higher oil prices with the pair now gyrating towards its 100-day moving average seen at 1.3516 at the moment.</p><p style=““ class=“text-align-justify“>The antipodeans are sitting a little higher but they aren’t really going anywhere as well with AUD/USD stuck just below its 200-day moving average (blue line) near 0.6700 now after bouncing off its November lows:</p><p style=““ class=“text-align-justify“>NZD/USD is finding things even more difficult as it is sandwiched between its 100 (red line) and 200-day (blue line) moving averages:</p><p style=““ class=“text-align-justify“>With month-end trading also a key focus point in the sessions ahead, we are still awaiting firmer moves in the dollar to gather more conviction on the next big trending move.</p>

This article was written by Justin Low at www.forexlive.com.

<p class=“MsoNormal“>One of
the most well-known Chinese companies, Alibaba, is about to become six
well-known Chinese companies. The e-commerce giant announced that it is going
to split into six independent units soon – and its stock celebrated this fact
with 14% growth. But when shares show this kind of moonshot, this poses the
question – is it too late to buy them?</p><p class=“MsoNormal“>Alibaba
enriched its market value by about $33 bln after investors got the news that
the company would split into six separate firms with their own CEOs and boards.
All the units will be responsible for different lines of business. So, meet the
newbies – Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services
Group, Cainiao Smart Logistics Group, Global Digital Commerce Group, and
Digital Media and Entertainment Group. Each one of these future companies is
quite capable of becoming public at some time.</p><p class=“MsoNormal“>If you
have Alibaba stock in your portfolio, you can probably look at the chart below
till the crack of doom. Although, news and releases from companies are not the
only things that influence the market. They can also be affected by various
economic events planned well in advance. In order to stay on top of these
events and make changes to your portfolio accordingly, you can utilize
different trading tools, such as the <a target=“_blank“ href=“https://www.tradingview.com/economic-calendar/“ target=“_blank“ rel=“follow“>economic
calendar</a> – it shows all the significant events that investors and
traders need to know.</p><p class=“MsoNormal“>Not all
details about <a target=“_blank“ href=“https://www.investopedia.com/ask/answers/what-stock-split-why-do-stocks-split/“ target=“_blank“ rel=“follow“>the future split</a> have been made clear so far,
but many analysts believe that Alibaba papers hold promise. There are two key
factors. Firstly, experts believe that shares may be undervalued now, and the
reorganization will help to re-evaluate every company separately, in a
meaningful way.</p><p class=“MsoNormal“>Moreover,
comparatively small companies are likely to be more flexible and will be able
to react more quickly to the market, economic, and regulatory changes. </p><p class=“MsoNormal“>Another
factor is China’s regulatory policy. In the past few years, large Chinese
companies have been under pressure. Large-scale and long-term inspections have
severely besieged the shares of Alibaba, as well as the rest of the Chinese
stock market. But there is hope that this period is coming to an end, taking
with it the Covid-19 restrictions.</p><p class=“MsoNormal“>Even
after an explosive 14% increase, analysts have outlined an impressive target
price for <a target=“_blank“ href=“https://www.tradingview.com/symbols/NYSE-BABA/“ target=“_blank“ rel=“follow“>Alibaba stock</a>. The consensus forecast is +45%
over the next 12 months. </p><p class=“MsoNormal“>But
don’t forget that markets change every week, day, and hour. That’s why you need
to do your own research before every trade. That’s the key to success.</p>

This article was written by ForexLive at www.forexlive.com.