<p style=““ class=“text-align-justify“>The lack of any negative headlines in itself is a positive development, and that is what’s helping broader market sentiment today I would say. The banking turmoil has caused plenty of panic and worries but it looks like we are finally seeing traders and investors breathe a much needed sigh of relief.</p><p style=““ class=“text-align-justify“>2-year German bond yields are now 20 bps today to 2.52% while 2-year Treasury yields are up 15 bps to 4.07% at the moment.</p><p style=““ class=“text-align-justify“>It still doesn’t take away from the plunge that we have seen in the past week or so but it is at least a start. That indicates safety bets are starting to abate and we are seeing equities benefit as a result. Here’s a snapshot of things in Europe:</p><ul><li>Eurostoxx +1.8%</li><li>Germany DAX +1.7%</li><li>France CAC 40 +1.7%</li><li>UK FTSE +1.4%</li></ul><p style=““ class=“text-align-justify“>Meanwhile, S&amp;P 500 futures are also seen up 25 points, or 0.6%, at the moment with Dow futures also seen up 0.6% and Nasdaq futures up 0.3% on the day.</p><p style=““ class=“text-align-justify“>In FX, things are more mixed though but the Japanese yen is among the laggards as bond yields climb higher. USD/JPY is up 0.8% to 132.30 levels now with the dollar sitting more mixed – down against the euro and franc but up against the pound and antipodeans.</p>

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

<ul><li style=““ class=“text-align-justify“>Treasury, Fed, FDIC actions reduced risk of further bank failures that would have imposed losses on deposit insurance fund</li><li style=““ class=“text-align-justify“>Similar actions to protect depositors could be warranted if smaller institutions suffer deposit runs that pose risk of contagion</li><li style=““ class=“text-align-justify“>Aggregate deposit outflows from regional banks have stabilised</li><li style=““ class=“text-align-justify“>Fed is working to provide <a target=“_blank“ href=“https://www.forexlive.com/terms/l/liquidity/“ class=“terms__main-term“ id=“633aaf0b-b4a1-40c5-8fbe-bf158af520a1″ target=“_blank“>liquidity</a> to banking system, which is stabilising</li></ul><p style=““ class=“text-align-justify“>This is just a rehash of their commitment to safeguard bank deposits. For now, we might turn the page to the next chapter. But we shall see whether or not lawmakers, policymakers and regulators alike will have learned anything from this episode.</p>

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

<p>On the daily chart below, we can
see that the price has eventually break above the downward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a>, but the buyers couldn’t extend
the rally much as the sellers are leaning on the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a>. The US Dollar is under pressure as the market expects the Fed to cut
interest rates as soon as June and lead to big cuts before the end of the year.
</p><p>We also have a tentatively
positive risk sentiment as the central banks took emergency measures to calm the
markets amid the troubles in the banking sector. It’s all about the sentiment
lately and it can turn on a dime, so make sure to follow <a target=“_blank“ href=“https://www.forexlive.com“ target=“_blank“ rel=“follow“>forexlive</a> to never miss a beat. </p><p>On the 4 hour chart below, we can
see that the buyers are struggling at the 0.67 handle as the sellers are
fighting hard to defend that level. The buyers are nevertheless leaning on the
red long period moving average, but it’s likely that the next direction will be
decided by the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>FOMC
decision tomorrow</a> where the Fed is expected to deliver a dovish 25
bps hike. </p><p>In case the Fed decides to push
back against the market pricing and keep with its tightening plan, we may see
the greenback coming back strongly. </p><p>On the 1 hour chart below, we can
see that the price got stuck in a box around the 0.67 handle. For the buyers, a
break above the box would give more control and we should see a rally towards
the next <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 0.6781. For the sellers, a
break below the box would give more conviction, and may lead to a fall below
the trendline to invalidate the change in trend and resume the original
downtrend. </p>

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

<ul><li>Prior -2.5%; revised to -2.3%</li></ul><p>After the slump in December, there was a notable bounce in euro area construction activity in January. Looking at the breakdown, building construction increased by 4.2% and
civil engineering by 3.0%.</p>

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

<p>Early jitters:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/european-bond-yields-sink-at-the-open-as-fear-dominates-20230320/“>European bond yields sink at the open as fear dominates</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/japanese-yen-rally-extends-as-risk-jitters-persist-20230320/“>Japanese yen rally extends as risk jitters persist</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/gold-breaches-2000-mark-for-the-first-time-since-march-last-year-20230320/“>Gold breaches $2,000 mark for the first time since March last year</a></li></ul><p>Mid-way recovery:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/european-indices-pare-early-losses-in-up-and-down-start-to-the-day-20230320/“>European indices pare early losses in up and down start to the day</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/gold-breakout-fizzles-as-risk-sentiment-recovers-some-poise-20230320/“>Gold breakout fizzles as risk sentiment recovers some poise</a></li></ul><p>Economic data:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-january-trade-balance-113-billion-vs-181-billion-prior-20230320/“>Eurozone January trade balance -€11.3 billion vs -€18.1 billion prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-february-ppi-03-vs-05-mm-expected-20230320/“>Germany February PPI -0.3% vs -0.5% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/snb-total-sight-deposits-we-17-march-chf-5151-bn-vs-chf-5108-bn-prior-20230320/“>SNB total sight deposits w.e. 17 March CHF 515.1 bn vs CHF 510.8 bn prior</a></li></ul><p>Markets:</p><ul><li>JPY leads, NZD lasg on the day</li><li>European equities higher; S&amp;P 500 futures down 0.1%</li><li>US 10-year yields down 4 bps to 3.36%</li><li>Gold down 0.3% to $1,982.71</li><li>WTI crude down 1.8% to $65.56</li><li>Bitcoin up 5.2% to $28,225</li></ul><p style=““ class=“text-align-justify“>After the takeover of Credit Suisse by UBS and major central banks banding together to bolster liquidity conditions, risk got off to a good start in Asia. However, all of that turned on its head right before European markets opened as the jitters returned.</p><p style=““ class=“text-align-justify“>There was already a bit of a <a target=“_blank“ href=“https://www.forexlive.com/news/markets-fairly-tentative-now-as-early-optimism-peters-out-20230320/“ target=“_blank“ rel=“follow“>tentative mood</a> during the handover but that quickly descended into an all-out risk-off move as bond yields tumbled and equities were sold off. That led to a gap lower in risk trades when Europe opened, with 2-year German bond yields falling by over 30 bps right off the bat.</p><p style=““ class=“text-align-justify“>It hit a low of 2.09% before recovering back now to 2.23%, though still down 20 bps on the day. Meanwhile, 2-year Treasury yields sank from a high of 4.03% all the way to 3.63% but is now seen holding around 10 bps lower at 3.74%.</p><p style=““ class=“text-align-justify“>It was a volatile one with equities also dragged for a ride. Credit Suisse shares opened over 60% lower as the fears reverberated and European banking stocks were down about 6% before paring that just under 2% now. Meanwhile, the turnaround saw major indices in the region come back up to positive territory with S&amp;P 500 futures paring a 50-point drop to be down just 4 points now.</p><p style=““ class=“text-align-justify“>There wasn’t any major headlines leading to the turn in sentiment, as right now markets are continuing to trade on emotions.</p><p style=““ class=“text-align-justify“>I would say the longer we go without any major headline scares, that would lead to steadier hands in play.</p><p style=““ class=“text-align-justify“>In FX, USD/JPY initially saw a big drop from 131.80 to 130.55 but has now recovered slightly around 131.00 on the day. The dollar traded up and down in mixed fashion, following the market mood but is now sitting little changed across the board elsewhere.</p><p style=““ class=“text-align-justify“>In the commodities space, gold attempted a break above $2,000 early on amid the negative risk mood but has seen that advance pull back to sit lower on the day now.</p>

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

<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.