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USD

Improved sentiment, but for how long?

• Improved sentiment. Banking concerns have eased, at least temporarily. Equities a little higher, while a shift in expectations has pushed up bond yields.• Stable USD. Positive sentiment has weighed on the JPY, while stronger German data and hawkish ECB and BoE rhetoric boosted EUR and GBP.• AUD cross-check. AUD under pressure on the crosses. AU retail sales released today. The data will shape the RBA’s near-term interest rate thinking. Banking sector induced volatility continued overnight, although in a change from the recent trend sentiment was more positive with confidence about the resilience of the system improving. Reports that US...

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Chartbook: March 27

Charts from this week’s internal trading call: Markets are still behaving irrationally. [embedpress embedpress_embeded_link=” prefix_nftcreator=’false’ prefix_nftprice=’false’ prefix_nftlastsale=’false’ label_nftbutton=’false’ loadmorelabel=’false’ label_nftrank=’false’ label_nftdetails=’false’ embedpress_pro_embeded_source=’default’ embedpress_pro_embeded_nft_type=’false’ spotify_theme=’false’ embedpress_pro_video_start_time=’false’ embedpress_pro_youtube_end_time=’false’ embedpress_pro_youtube_auto_play=’false’ embedpress_pro_youtube_display_controls=’false’ embedpress_pro_youtube_enable_fullscreen_button=’false’ embedpress_pro_youtube_display_video_annotations=’false’ embedpress_pro_youtube_progress_bar_color=’false’ embedpress_pro_youtube_force_closed_captions=’false’ embedpress_pro_youtube_modest_branding=’false’ embedpress_pro_youtube_display_related_videos=’false’ embedpress_pro_youtube_logo=’false’ embedpress_pro_youtube_logo_size=’false’ embedpress_pro_youtube_logo_custom_dimension=’false’ embedpress_pro_youtube_logo_xpos=’false’ embedpress_pro_youtube_logo_xpos_tablet=’false’ embedpress_pro_youtube_logo_xpos_mobile=’false’ embedpress_pro_youtube_logo_ypos=’false’ embedpress_pro_youtube_logo_ypos_tablet=’false’ embedpress_pro_youtube_logo_ypos_mobile=’false’ embedpress_pro_youtube_logo_opacity=’false’ embedpress_pro_youtube_logo_opacity_hover=’false’ embedpress_pro_youtube_cta=’false’ embedpress_pro_vimeo_auto_play=’false’ embedpress_pro_vimeo_color=’false’ embedpress_pro_vimeo_display_title=’false’ embedpress_pro_vimeo_display_author=’false’ embedpress_pro_vimeo_avatar=’false’ embedpress_pro_vimeo_loop=’false’ embedpress_pro_vimeo_autopause=’false’ embedpress_pro_vimeo_dnt=’false’ embedpress_pro_vimeo_logo=’false’ embedpress_pro_vimeo_logo_size=’false’ embedpress_pro_vimeo_logo_custom_dimension=’false’ embedpress_pro_vimeo_logo_xpos=’false’ embedpress_pro_vimeo_logo_xpos_tablet=’false’ embedpress_pro_vimeo_logo_xpos_mobile=’false’ embedpress_pro_vimeo_logo_ypos=’false’ embedpress_pro_vimeo_logo_ypos_tablet=’false’ embedpress_pro_vimeo_logo_ypos_mobile=’false’ embedpress_pro_vimeo_logo_opacity=’false’ embedpress_pro_vimeo_logo_opacity_hover=’false’ embedpress_pro_vimeo_cta=’false’ embedpress_pro_wistia_auto_play=’false’ embedpress_pro_wistia_color=’false’ embedpress_pro_wistia_captions_enabled_by_default=’false’ embedpress_pro_wistia_fullscreen_button=’false’ embedpress_pro_wistia_small_play_button=’false’ embedpress_pro_wistia_resumable=’false’ embedpress_pro_wistia_focus=’false’ embedpress_pro_wistia_captions=’false’ embedpress_pro_wistia_playbar=’false’ embedpress_pro_wistia_volume_control=’false’ embedpress_pro_wistia_volume=’false’ embedpress_pro_wistia_rewind=’false’ embedpress_pro_wistia_rewind_time=’false’ embedpress_pro_wistia_logo=’false’ embedpress_pro_wistia_logo_size=’false’ embedpress_pro_wistia_logo_custom_dimension=’false’ embedpress_pro_wistia_logo_xpos=’false’ embedpress_pro_wistia_logo_xpos_tablet=’false’ embedpress_pro_wistia_logo_xpos_mobile=’false’ embedpress_pro_wistia_logo_ypos=’false’ embedpress_pro_wistia_logo_ypos_tablet=’false’ embedpress_pro_wistia_logo_ypos_mobile=’false’ embedpress_pro_wistia_logo_opacity=’false’ embedpress_pro_wistia_logo_opacity_hover=’false’ embedpress_pro_wistia_cta=’false’ embedpress_pro_soundcloud_visual=’false’ embedpress_pro_soundcloud_color=’false’ embedpress_pro_soundcloud_autoplay=’false’ embedpress_pro_soundcloud_share_button=’false’ embedpress_pro_soundcloud_comments=’false’ embedpress_pro_soundcloud_artwork=’false’ embedpress_pro_soundcloud_play_count=’false’ embedpress_pro_soundcloud_user_name=’false’ embedpress_pro_soundcloud_buy_button=’false’...

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Calmer Heads Prevail?

A sense of cautious optimism is returning to financial markets this morning as investors bet contagion risks at regional banks in Europe and the United States have been largely contained. All of the major currency pairs are trading within relatively tight ranges, Treasury yields are inching back from last week’s selloff, and equity futures are setting up for a stronger open. Oil prices are rising, gold is falling, and the Canadian dollar – again functioning more like a risk proxy than a national currency unit – is climbing against the greenback. Signs of stability are returning. European bank shares climbed through the...

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More banking sector worries

• Banking concerns. Worries about Deutsche Bank weighed on European equities, bond yields and the EUR at the end of last week.• USD rebound. Lingering banking sector risks supported the USD. A broader set of signals points to a more difficult backdrop over the period ahead.• AUD pressure. The bounce back in the USD has pushed the AUD lower. AU retail sales, the monthly CPI, and the China PMIs are released this week. Markets remained volatile at the end of last week, with banking sector concerns still bubbling away. On Friday Deutsche Bank came under pressure, with the share price...

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TGIF?

As 2023 unfolds, “Thank God It’s Friday” is rapidly becoming “Oh No, It’s Friday”. Risk appetites are shrinking across the financial markets this morning as investors brace for a weekend that could follow its predecessors in bringing more scary news. The dollar is pushing higher against all of its major non-Japanese counterparts, two-year Treasury yields appear headed back toward the lows reached earlier in the week, and futures suggest equity indices are setting up for a weaker open. North American crude futures are exchanging hands near $67 a barrel, below levels at which the Biden administration had committed to refilling...

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