<p>On the daily chart below, we can
see that the market is consolidating at the key 1731 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a>. The sentiment around the
banking sector remains skewed to the downside for now. Regional banks make up a
notable chunk of the Russell 2000 index and that’s why the index underperformed
for example the S&amp;P500. </p><p>Tonight the Fed took another <a target=“_blank“ href=“https://www.forexlive.com/centralbank/fed-boe-boj-ecb-snb-boc-to-coordinate-action-to-enhance-liquidity-provision-20230319/“>emergency
action</a> enhancing the provision of US Dollars via swap lines with other major
central banks to increase liquidity. This weighed on the risk sentiment further
as the market is fearing that something serious is happening in the banking
system and as futures market opened, the market sold off non-stop during the
APAC session</p><p>On the 4
hour chart below, we can see that the sellers tried a break below the support
but it’s now getting faded. It’s likely that we’ll see first a pullback before
another push lower if the market remains on the defensive and the sellers want
to position short into the FOMC meeting. </p><p>It may be
that any action the Fed takes on the interest rates front would be bearish for
the market. On one hand, if they pause or cut it would signal that something
really bad is happening. On the other hand, if they keep hiking it may pressure
the market even more. </p><p>On the 1 hour chart, we can see
more closely the range created between the support at 1731 and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 1800. We may see now the
sellers leaning on the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a>, targeting the breakout and new lower lows. The buyers, on the other
hand, will need a break above the trendline to get some conviction and target
the top of the range at 1800. </p>

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

<p style=““ class=“text-align-justify“>“German economic activity will probably fall again in the current quarter. However, the decline is likely to be less than in the final quarter of 2022.“</p><p style=““ class=“text-align-justify“>On inflation, the Bundesbank says that inflation is likely to fall this month but „the core rate is proving exceptionally persistent and could even increase slightly towards the middle of the year“.</p>

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

<p><a target=“_blank“ href=“https://fxgrow.com/en“>Forex trading</a>
is a lucrative financial market that allows traders to earn significant returns
on their investments. However, because of the market’s high volatility, traders
run the risk of losing their investments. </p><p>Leverage in
forex is one way that traders manage this risk. In this article, we’ll look at
the role of leverage in Forex trading, how it works, and the advantages and
disadvantages of using it. </p><p>What is
leverage in forex? </p><p>The use of
borrowed funds to increase the potential return on investment is known as
leverage. Leverage in <a target=“_blank“ href=“https://fxgrow.com/en“ target=“_blank“ rel=“follow“>Forex trading</a> allows traders to control a large
amount of currency with a small investment. </p><p>A trader with a
leverage ratio of 100:1 can, for example, control $100,000 in currency with a
$1,000 investment. This means that the trader is 100 times leveraging their
investment. </p><p>Leverage
role in forex trading</p><p>Leverage is
achieved through the use of a margin account, which is a type of trading
account that allows traders to borrow money from their broker in order to
execute trades. </p><p>The margin is
the amount of money that a trader must deposit in order to open a position. The
margin requirement is typically expressed as a percentage of the position’s
total value. </p><p>Leverage
ratios</p><p>In <a target=“_blank“ href=“https://fxgrow.com/en“ target=“_blank“ rel=“follow“>Forex
trading</a>, a leverage
ratio is the ratio of the trader’s own funds to the amount borrowed from the
broker to open and maintain a position in the market. It is expressed as a
percentage of the total value of the position controlled by the trader with
borrowed funds. </p><p>For example, a
trader with a leverage ratio of 100:1 controls a position worth $100 for every
$1 of their own funds invested. In other words, the trader borrows $99 for
every $1 invested from their own funds. This enables the trader to control a
larger position than they could without leverage. </p><p>The leverage
ratio determines how much margin is needed to open and keep a position open.
For example, if the leverage ratio is 50:1 and a trader wants to open a $10,000
position, they must deposit $200 of their own funds as margin (50:1 is
equivalent to a 2% margin requirement). </p><p>While leverage
can increase potential profits, it also increases the potential for losses, so
traders should exercise caution when using leverage. Before using leverage in <a target=“_blank“ href=“https://fxgrow.com/en“ target=“_blank“ rel=“follow“>Forex
trading</a>, it is critical
to have a solid understanding of leverage and risk management strategies.</p><p>What are the
advantages of leveraging with forex trading? </p><p>The main
benefit of using leverage in Forex trading is that it allows traders to make
larger profits with a smaller investment. For example, if a trader invests
$1,000 and uses a leverage of 100:1, he or she can control a $100,000 position.
</p><p>The trader would
profit $1,000 if the price of the currency pair rose by 1%. This is a 100
percent return on investment. </p><p>Another
advantage of using leverage is the ability to diversify one’s portfolio. <a target=“_blank“ href=“https://secure.fxgrow.com/register?lang=en“ target=“_blank“ rel=“follow“>Traders</a>
can use leverage to open multiple positions with a smaller investment, lowering
the risk of losing their entire investment on a single trade. </p><p>What are the
disadvantages of leveraging? </p><p>The main
disadvantage of using leverage in <a target=“_blank“ href=“https://fxgrow.com/en“ target=“_blank“ rel=“follow“>Forex trading</a> is that it raises the possibility of
losing money. Traders who use leverage borrow money from their broker to make
trades. If the trade fails, they must repay the loan and may lose more money than
they initially invested. </p><p>Another
disadvantage of using leverage is that it can lead to excessive trading.
Leveraged traders may be tempted to open more positions than they can handle,
which can result in poor decision-making and losses. </p><p>How to Use Leverage
Wisely </p><p>Leverage can be
dangerous in <a target=“_blank“ href=“https://fxgrow.com/en“ target=“_blank“ rel=“follow“>Forex trading</a>,
but it can also be a powerful tool when used responsibly. Here are some
pointers on how to use leverage responsibly: </p><p>·
Understand
the risks: Before using leverage, it is critical to understand the risks.
Traders should be aware of the risk of loss and have a risk management strategy
in place. </p><p>·
Use
a stop loss: A stop loss is an order that closes a trade automatically when the
price of a currency pair reaches a certain level. This can help you limit your
losses and avoid losing more money than you can afford. </p><p>·
Select
a <a target=“_blank“ href=“https://fxgrow.com/en“ target=“_blank“ rel=“follow“>reputable
broker</a>: It is critical
to select a broker who is regulated and has a good reputation. Before selecting
a broker, traders should conduct research and read reviews. </p><p>·
Begin
with a small investment: Traders should begin with a small investment and
gradually increase their leverage as they gain experience. </p><p>·
Overtrading
should be avoided: Traders should only open positions that they can manage.
Overtrading can result in poor decision-making and increase the risk of loss. </p><p>·
Traders
should use leverage sparingly and only when absolutely necessary. Excessive
leverage can increase the risk of loss and lead to overtrading. </p><p>·
Make
a trading strategy: Traders should have an entry and exit strategy, risk
management strategies, and an overall trading strategy in place. This can help
to lower the risk of losses while also improving trading performance. </p><p>Conclusion </p><p>To summarize,
leverage can be a powerful tool in <a target=“_blank“ href=“https://fxgrow.com/en“ target=“_blank“ rel=“follow“>Forex trading</a>, but it also carries significant risks.
Traders who employ leverage should do so responsibly and with a risk management
strategy in place. </p><p>To avoid
overtrading and limit losses, it is critical to understand the risks involved
and to use leverage wisely. Traders can use leverage to increase potential
returns while managing risk by following these tips.</p>

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

<p style=““ class=“text-align-justify“>This relates to the enhanced dollar swap facility that was established overnight, in which the frequency will be increased to daily from the typical 7 days. In case you missed the headline:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/fed-boe-boj-ecb-snb-boc-to-coordinate-action-to-enhance-liquidity-provision-20230319/“ target=“_blank“ rel=“follow“>Fed, BoE, BoJ, ECB, SNB, BoC to coordinate action to enhance liquidity provision</a></li></ul>

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

<p style=““ class=“text-align-justify“>The Japan defence ministry adds that the missile flew to an altitude of 50km and covered a range of 800km before splashing into the sea.</p><p style=““ class=“text-align-justify“>The provocations and boldness continues from North Korea and the latest one is another apparent protest to the ongoing military exercise between South Korea and the US.</p>

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

<p>Its an active central bank calendar coming up on Monday, 20 March 2023 during the Asia session. </p><p>At 1810 US Eastern time the Reserve Bank of Australia:</p><ul><li> Christopher Kent, Assistant Governor (Financial Markets)</li><li>speaking on: „Long and Variable Monetary Policy Lags“</li></ul><p>Expectations are rising of an RBA pause at their next meeting, April 4:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/westpac-forecast-an-rba-rate-pause-at-the-april-4-meeting-20230317/“ target=“_blank“ rel=“follow“ data-article-link=“true“>Westpac forecast an RBA rate pause at the April 4 meeting</a></li></ul><p>But its not unanimous:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/anz-maintain-their-forecast-for-an-rba-rate-hike-at-the-april-and-may-policy-meetings-20230317/“ target=“_blank“ rel=“follow“ data-article-link=“true“>ANZ maintain their forecast for an RBA rate hike at the April and May policy meetings</a></li></ul><p>At 1750 US Eastern time we get the ‚Summary‘ from the BOJ March meeting. This was Bank of Japan Governor Kuroda’s final meeting. Policy was left unchanged at this meeting:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/bank-of-japan-leaves-policy-unchanged-as-widely-expected-20230310/“ target=“_blank“ rel=“follow“ data-article-link=“true“>Bank of Japan leaves policy unchanged, as widely expected</a></li></ul><p>At 2115 we get the monthly Loan Prime Rate (LPR) setting from the People’s Bank of China. I posted a preview here:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/pboc-interest-rate-decision-due-on-monday-analysts-sees-cut-to-support-the-economy-20230316/“ target=“_blank“ rel=“follow“>PBOC interest rate decision due on Monday</a></li></ul><p>On Friday the Bank dropped this in:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/pboc-announces-cut-to-banks-reserve-requirement-ratio-by-25-bps-20230317/“ target=“_blank“ rel=“follow“>PBOC announces cut to banks‘ reserve requirement ratio by 25 bps</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.

<p>Sources indicate that UBS is close to finalizing a deal to acquire Credit Suisse, as Swiss and global authorities work to mitigate banking sector contagion and restore confidence in the financial system. The agreement could be reached as early as Sunday.</p><p>The <a target=“_blank“ href=“https://www.forexlive.com/terms/s/swiss-national-bank/“ class=“terms__main-term“ id=“7ffdcf63-96f7-446b-abb6-cda662c6ccad“ target=“_blank“>Swiss National Bank</a> (SNB) provided a $50 billion lifeline earlier this week, although Credit Suisse’s stock price, following a brief rally, declined once more. US shares closed on Friday at $2.01, marking a 24.44% drop for the week, with the week’s lowest price at $1.75.</p><p class=“text-align-start“>Meanwhile, in the US, Silicon Valley Bank filed for Chapter 11 <a target=“_blank“ href=“https://www.forexlive.com/terms/b/bankruptcy/“ class=“terms__secondary-term“ id=“2b54c285-6f67-4222-99aa-f58b353eea4f“ target=“_blank“>bankruptcy</a> on Friday, one week after regulators shuttered the bank and guaranteed all depositor funds. Signature Bank was closed by regulators last weekend as well, after losing billions in withdrawals due to contagion from the collapse of Silicon Valley Bank.</p><p>Hedge fund manager Bill Ackman tweeted on Friday:</p><p>A source familiar with the matter denied BofA interest in Signature. </p><p>

First Republic’s stock price continued its downward trend on Friday, despite a consortium of banks depositing $30 billion into the bank just a day earlier. After hitting a low of $17.53 on Wednesday, the stock rallied to a high of $40 on Thursday. However, it reversed course on Friday, closing at $23.03, a 14.07% decrease. In after-hours trading, the price slid even further to a low of $19.49. Moody’s downgrades First Republic Bank to B2 from Baa1.</p>

This article was written by Greg Michalowski at www.forexlive.com.

<p style=““ class=“text-align-justify“>According to Moody’s, the downgrade and ratings reflect „the deterioration in the bank’s financial profile and the significant challenges it faces“. Adding that it is maintaining ratings under review for a downgrade as well. For some context, a drop from B2 to Baa1 is straight up putting the credit profile of First Republic Bank into speculative and high risk territory.</p><p style=““ class=“text-align-justify“>There really should be ratings agencies for ratings agencies themselves at this point. They have been so out of it ever since the events leading up to the global financial crisis.</p>

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

<ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-stocks-close-lower-on-the-day-nasdaq-rises-44-this-week-dow-has-a-small-decline-20230317/“>US stocks close lower on the day. Nasdaq rises 4.4% this week. Dow has a small decline.</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/wti-crude-oil-futures-settle-at-6674-20230317/“>WTI crude oil futures settle at $66.74. The fall this week is the largest since April 2020</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/wsj-timiraos-the-fed-decision-likely-be-dependent-on-market-response-in-coming-days-20230317/“>WSJ Timiraos: The Fed decision likely be dependent on market response in coming days</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/credit-suisse-at-least-4-global-banks-have-put-restrictions-on-new-dealings-w-cs-group-20230317/“>Credit Suisse: At least 4 global banks have put restrictions on new dealings w/ CS group</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/gasparino-bidding-for-svb-has-begun-today-20230317/“>Gasparino: Bidding for SVB has begun today</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecb-insider-id-support-another-50-bp-hike-unless-20230317/“>ECB Insider: I’d support another 50 BP hike, unless…</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/baker-hughes-oil-rigs-down-1-to-589-but-nat-gas-rigs-move-up-9-in-the-current-week-20230317/“>Baker Hughes oil rigs down -1 to 589, but nat gas rigs move up 9 in the current week</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/technical-analysis/european-indices-close-the-day-and-the-week-sharply-lower-20230317/“>European indices close the day and the week sharply lower</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-leading-index-for-february-03-versus-03-estimate-20230317/“>US leading index for February -0.3% versus -0.3% estimate</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/university-of-michigan-sentiment-preliminary-for-march-634-versus-670-last-month-20230317/“>University of Michigan sentiment preliminary for March 63.4 versus 67.0 last month</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/Education/banks-woes-boost-bitcoin-performance-20230317/“>Banks‘ Woes Boost Bitcoin Performance</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/Education/fmas23-the-importance-of-networking-for-traders-20230317/“>FMAS:23 – The Importance of Networking for Traders</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-february-industrial-production-00-versus-02-estimate-20230317/“>US February industrial production 0.0% versus 0.2% estimate</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/canada-international-transactions-in-securities-january-2023-declined-by-1618-billion-20230317/“>Canada international transactions in securities January 2023 declined by $-16.18 billion</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/canada-producer-prices-for-february-1-4-yoy-versus-50-last-month-revised-from-54-20230317/“>Canada producer prices for February 1 .4% YoY versus 5.0% last month (revised from 5.4%)</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/svb-financial-files-for-chapter-11-bankruptcy-20230317/“>SVB Financial files for Chapter 11 bankruptcy</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/technical-analysis/the-jpy-is-the-strongest-and-the-usd-is-the-weakest-as-the-north-american-session-begins-20230317/“>The JPY is the strongest and the USD is the weakest as the North American session begins</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-european-fx-news-wrap-dollar-trims-losses-as-markets-remain-anxious-20230317/“>ForexLive European FX news wrap: Dollar trims losses as markets remain anxious</a></li></ul><p>US rates moved sharply lower today as banking concerns along with hopes for a more dovish Fed next week, sent funds flowing into US treasuries. </p><p>Looking at the US treasury curve, the:</p><ul><li>2 year: 3.387%, down -29.3 basis points</li><li>5 year: 3.504%, down -23.2 basis points</li><li>10 year: 3.439%, down -26 basis points</li><li>30 year: 3.627%, down -8.2 basis points. </li></ul><p>For the week, the yields were sharply lower as traders reacted to the banking crises in Switzerland and the US. Today Silicon Valley Bank filed for Chapter 11 bankruptcy. Meanwhile First Republic, which rallied yesterday on the back of a syndicate of US banks depositing $30 billion into their bank, saw it’s price tumbled -32.8% or $11.24 to $23.03.</p><p>Looking at the changes in US debt yields this week</p><ul><li>2 year -76 basis points. That is the sharpest one week fall since 2001 </li><li>5 year -47 basis points. Sharpest week fall since 2008.</li><li>10 year -14.7 basis points</li><li>30 year -7.9 basis points</li></ul><p>The 2-10 year spread this week steepened by 50 basis points to -39 basis points. That spread was as negative as -108 basis points last week. It was the biggest steepened her since 2001.</p><p>Looking at other markets there were huge moves in gold, silver, crude oil and Bitcoin this week:</p><ul><li>Gold today is trading up $65.99 or 3.45% at $1987.85. This week the price moved up $120 or 6.45% held by the sharply lower interest rates. The next target comes against the swing high from April 2022 at $1998.39. The high price for 2022 reach $2070.42.</li><li>Silver is trading up $0.86 or 3.96% at $22.58. For the trading week, the prices up $2.06 or 10.07%. The gain of over 10% is the largest increase since August 3, 2020</li><li>Crude oil fell $1.92 today at $66.43. For the week, the price fell $10.27 or -13.39% the decline is the largest since April 2020</li><li>Bitcoin is trading at $26,846 and at the highest level since June 2022. For the trading week, the price is up $4652 or 20.97%. The price bitcoin is closing above its 200 week moving average for the first time since August 2022</li></ul><p>In the forex today, the JPY is ending as the strongest of the major currencies, while the CAD is the weakest. The JPY benefited from flight to safety flows. The CAD was the weakest helped by lower oil prices and PPI data which was lower than expectations. The fall in PPI data is positive for future CPI. </p><p>For the trading week, the USD moved lower against all the major currency pairs with the exception of the a rise vs the CHF:</p><ul><li>The DXY fell -0.74%. The largest decline since January 9</li></ul><p>Versus the major currencies, the USD had weekly changes of:</p><ul><li>EUR, -0.235%</li><li>JPY, -2.39% (largest decline since January 9)</li><li>GBP, -1.18%</li><li>CHF, +0.46%</li><li>CAD, -0.65%</li><li>AUD, -1.79% (largest decline since January</li><li>NZD, -2.06% (largest decline since November 2022)</li></ul><p>The EURUSD still moved lower despite a 50 basis point hike by the ECB on Thursday. Next week both the Fed and the BOE will announce interest rate decisions. </p><p>Finally, in the stock markets this week, European shares fell sharply. In the US the NASDAQ index had a solid gain over 4%, but the Dow Industrial Average fell modestly. In Asia Pacific, China’s Shanghai composite index and Hong Kong’s Hang Seng index rose , but Japan’s Nikkei and Australia’s S&amp;P/ASX index both fell over to percent</p><ul><li>Dow Industrial Average: -0.15%</li><li>S&amp;P index: +1.43%</li><li>NASDAQ index: +4.41%</li><li>German DAX: -4.28%</li><li>France’s CAC: -4.09%</li><li>UK’s FTSE 100: -5.33%</li><li>Spain’s Ibex: -6.09%</li><li>Italy’s FTSE MIB, -6.55%</li><li>Nikkei 225, -2.88%</li><li>Hong Kong’s Hang Seng index, +1.03%</li><li>China’s Shanghai composite index, +0.63%</li><li>Australia’s S&amp;P/ASX index, -2.1%</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.

<p>The major US indices are closing the day with declines across the board. The declines were led by the Dow but the S&amp;P also fell by 1%. The Nasdaq was the best of the worst. </p><p>For the week, the pattern was the same as flow of funds moved into the big tech cap stocks of the Nasdaq. The Dow fell on the week and the S&amp;P had a modest gain. </p><p>A look at the final numbers for the day shows:</p><ul><li>Dow Industrial Average fell -384.52 points or -1.19% at 31861.97</li><li>S&amp;P index fell -43.64 points or -1.10% at 3916.65</li><li>NASDAQ index fell -86.75 points or -0.74% at 11630.52</li><li>Russell 2000 fell -45.34 points or -2.56% at 1725.89</li></ul><p>for the trading week:</p><ul><li>Dow Industrial Average closed near unchanged at -0.15% </li><li>S&amp;P index closed up 1.43%</li><li>NASDAQ index was the big winner with a gain of 4.41%</li></ul><p>The small cap Russell 2000 was actually the worst performer with a decline of -2.64%</p><p>For the NASDAQ index after declining below its 100 day moving average last Friday and again on Monday, the price rebounded to close above its higher 200 day moving average on Tuesday (at 11395.53 currently). Although the price traded above and below the 200 day moving average on Wednesday and Thursday, it took off on Thursday before correcting lower today. Nevertheless being above the 200 day moving average is a positive from a technical perspective for the index. </p>

This article was written by Greg Michalowski at www.forexlive.com.