Monetary Conditions And An Ongoing Banking Crisis Pressure

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US stock markets and futures moving lower of the ongoing banking crisis and the monetary condition as the higher dollar for session pressures equities and commodities while Gold benefits from the market situation.

Initially, the stock futures were rallying as investors expected the Federal Reserve to pause its interest rate hikes while the market got pressured by the banking sector’s concerns. However, Treasury Secretary Janet Yellen mentioned that authorities are ready to take action in the case to stabilize the US banks.

On the economic data front, we await US durable goods and manufacturing data to conclude further scenarios in the interest rate hike’s path. Markets are seemingly awaiting a dovish tone from the central bank, hence negative data could still support the equities.

The dollar is quietly monitored as the index is up by about 0.6% against the majors. The current monetary policy still aims to keep the dollar higher to fight inflation with concern about the baking crisis.

The expected 25 bps hike supports the dollar slightly while hints pointing to one more rate hike which may pressure the dollar. However, the Fed Chair doesn’t see any rate cuts for this particular year and seemingly is prepared to keep interest rates high, depending on the economic data flow.

2 Months Ago

The median-term perspective of the E-mini S&P 500 futures contract may await economic data or a bullish event to trigger the median-term perspective’s bullish biased calculation for the moment. The technical aspect of the market may await core buyers to add around the lower extreme of the Quarter’s developing value about the price at $3928.

The current session goes with mixed signs as traders may lean on the extremes of balanced profile shapes around various equities and commodities markets. The positive VIX of about 9% pressures the ES futures for the moment. The market may find absorption and buying around the prior session’s lows as the market needs to work its way back into the previous price range.

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