EURUSD: investors are waiting for the US Federal Reserve's decisions
A slight correction of the US dollar allowed EURUSD to test the level of 1.0769.
There is no stimulus for fundamental changes in the dynamics of the euro, which was confirmed by the latest macroeconomic statistics. Thus, the current economic environment in Germany according to the ZEW index for March was -46.5 points, which is lower than the previous 45.1 points. The value of the economic sentiment declined from 28.1 points to 13.0 points. Such figures were an "anchor" for similar indicators of all countries in the euro area, which reached 10.0 points from 29.7 points. Analysts call the crisis in the banking sector the main reason for the correction.
- Resistance levels: 1.0820, 1.0950.
- Support levels: 1.0680, 1.0520.
GBPUSD: correctional impulse development
GBPUSD is showing a mixed trend being around 1.2230 being under the pressure of the "bullish" impulse which came earlier, when the asset rebounded from the local high of February 2.
Investors are waiting for the publication of the statistics on consumer prices for February in the UK. Market expectations envisage decline of the value dynamics to 9.8% from 10.1% in the annual index, and the monthly index may show the growth of 0.6%, having earlier decreased by the similar indicator for January, at that the position of the core inflation indicator may remain at the level of 5.8%. In addition, economists want to assess retail price data; February's forecast is that the value may show an increase for the month to 0.6% from 0.0%, and for the year a slight correction to 13.2% from 13.4%.
The kingdom's regulator was positive about Swiss authorities' support for the merger of two large-scale credit reproducers, Credit Suisse Group AG and UBS Group AG, the former of which faced the threat of closure amid insufficient liquidity due to massive outflows of funds from its accounts. According to comments from officials in the government, Credit Suisse Group AG's U.K. branch employs about 5,000 full-time workers, and the institution itself holds the largest number of employees in the investment sector in the City of London.
- Resistance levels: 1.2236, 1.2283, 1.2350, 1.2400.
- Support levels: 1.2176, 1.2140, 1.2100, 1.2054.
USDCHF: Saudi National Bank is reviewing its investment in Credit Suisse Group
The USDCHF trade instrument showed corrective moods in the morning session, completing the negative dynamics of the previous day due to weak activity on the market, where investors are waiting for the outcome of the US Federal Reserve's meeting on monetary issues.
A summit of Swiss National Bank officials on interest rates is due tomorrow, March 23. The preliminary forecast of the analysts is unambiguous - the indicator will remain at the same level of 1.0%, taking into account a rather low value of the national inflation. Experts discuss the merger of banking conglomerates UBS Group AG and Credit Suisse Group AG, which is estimated at 3.0 billion francs. The takeover is scheduled to be completed by the end of this year, as the process will bypass protocol approval from the institutions' shareholders, but the government has committed 9.0 billion francs to cover possible costs. Meanwhile, the largest investor for Credit Suisse Group AG, Saudi National Bank has lost 80.0% of its value since buying a 9.9% block of securities worth 1.4 billion francs last fall.
- Resistance levels are 0.9258, 0.9300, 0.9350 and 0.9400.
- Support levels: 0.9200, 0.9150, 0.9100, 0.9070.
Gold analytics
The precious metal is correcting at 1940.00 amid significant declines of the last two sessions in a row, which allowed the asset to retreat from the record high of April 2022 and the fundamental resistance threshold of 2000.00.
Gold positions were pressured by rising yields on U.S. Treasury securities, which was only intensified by massive profit taking on long contracts ahead of the Fed officials' meeting on monetary policy. Preliminary estimates of analysts foresee the strengthening of the interest rate by no more than 0.25%, not ruling out that the agency may announce a temporary pause at all, refusing to tighten monetary parameters in the short term. The latter move may be taken wishing to deprive the growing crisis in the financial sector of further momentum, but investors will not accept such a decision. Still about 82% of economists agree that the regulator will increase the price threshold of borrowing by 0.25% and refrain from forecasting a further correction at the May meeting.
- Resistance levels: 1952.53, 1974.22, 2000.00, 2015.30.
- Support levels: 1930.00, 1914.44, 1900.00, 1878.84.