foreign exchange

Sterling fell back against the US dollar, falling below a one month high

The trading price of sterling against the US dollar fell on Tuesday, but it was still close to the one month high hit the previous day. The market turmoil had led to a sharp fall in US interest rate expectations and short-term yields, causing the US dollar to plummet.

The US inflation data released later in the day will also have an impact on the currency, but although it was regarded as one of the major events in the market this month a week ago, its impact may be submerged by recent fluctuations.

The exchange rate of sterling against the US dollar was US $1.2156, down 0.2% from the previous day's peak of US $1.22, the highest level since February 14.

futures

The rally driven by the gold price crisis was contained by rising US Treasury yields

Gold fell on Tuesday because the rise in US Treasury yields erased the recent rise driven by the US banking crisis, while the slight rise in US inflation in February raised more questions about interest rates.

Spot gold finally fell 0.34% to US $1906.8 per ounce. US gold futures fell 0.2% to US $1912.0 per ounce.

The higher benchmark U.S. 10-year Treasury yield reduces the attractiveness of zero yield gold.

The consumer price index (CPI) data of the United States in February had little impact on gold. The data showed that CPI rose by 0.4% month on month in February, which was in line with expectations, and had accelerated by 0.5% in January.

Oil prices fell to a nine week low due to inflation concerns and the closure of the Bank of America

Affected by the US inflation report and recent bank failures, oil prices fell by about 3% to a nine week low on Tuesday, triggering concerns about a new round of financial crisis, which may reduce the demand for crude oil in the future.

Brent crude oil futures fell $2.53, or 3.1%, to $78.24 a barrel. As of 1:59 p.m. EST (gmt+1759), WTI crude oil futures fell $2.48, or 3.35%, to $72.32 a barrel.

This has pushed both contracts into the field of technical oversold, which is the first time in several weeks. Brent crude oil futures will reach the lowest closing since January 4, and WTI crude oil futures will reach the lowest closing since December 9.

shares

S&P 500 index rose 1%, regional banks rebounded: real time update

On Tuesday, the US stock market rose, and investors bet that after the closure of Silicon Valley Bank and signature bank, the risk of chain reaction between banks has been controlled. The S&P 500 rose 1.1% and the Nasdaq composite rose 1.5%. The Dow Jones industrial average rose 153 points, or 0.5%, and the 30 stock index was designed to end five consecutive days of decline.

In the trading on Monday, bank stocks suffered heavy losses, but on Tuesday, bank stocks rebounded, and investors became more and more optimistic that other banks would not face the same fate as Silicon Valley and signature. Regulators said on Sunday that they had formulated a plan to provide backing for all depositors of the two banks.

In Tuesday's trading, the SPDR Standard&Poor's regional bank ETF (kre) rose 3%, while it fell 12% the day before. First Republic bank, a bank stock, fell nearly 62% after the close on Monday, but rose 30% on Tuesday. Keycorp's shares rose 10% in the technical rally, after falling 27%.

After the biggest three-day decline since 1987, the yield of two-year Treasury bonds rebounded

On Tuesday, the yield of two-year Treasury bonds rose and rebounded. After the bankruptcy of Silicon Valley banks, investors flocked to safe assets, resulting in the largest three-day decline in the yield of two-year Treasury bonds since 1987.

At present, the yield of the two-year Treasury bond is 4.317%, up nearly 29 basis points. After a fall of nearly 59 basis points on Monday, the yield of two-year Treasury bonds fell by the most in three days since the stock market crash in October, 1987.

Meanwhile, the yield of the 10-year Treasury bond rose by more than 11 basis points to 3.628%. Bond yields and prices fluctuate in the opposite direction, and one base point is equivalent to 0.01%.

Investment bank view

Scotiabank: eur/usd: the 55 day moving average breaking through 1.0719 will boost the near-term outlook

"The price pattern formed near 1.0749 yesterday shows that the top/reversal has been formed (the 'Twilight star' reversal on the 6-hour K-line chart)."

"The currency pair has encountered extensive resistance on the daily chart, which is defined by the 55 day moving average (1.0719); yesterday's close was slightly higher than this, but it needs a more obvious and lasting breakthrough to boost the short-term prospects of the euro."

"The intraday support level was 1.0665, and the stronger support level was 1.0650."