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Top 4 Forex News Updates of 16 March, 2023

by Elena Martin   ·  March 16, 2023  

Top 4 Forex News Updates of 16 March, 2023

by Elena Martin   ·  March 16, 2023  
In this article, we have covered the highlights of global market news about the NZD/USDUSD/CADEUR/USD and USD/JPY.

NZD/USD remains negative, around 0.6150, due to the weak NZ GDP and the problems at Credit Suisse and SVB.

NZD/USD is still weak at 0.6160, down for a second day in a row, despite recent intraday losses being pared ahead of Thursday’s European session. The Kiwi pair is burdened by the disappointing fourth-quarter Gross Domestic Product (GDP) figures for New Zealand (NZ) and market jitters brought on by the most recent bank failures in the US and Europe. It’s interesting to note that in recent hours, slow yields have accompanied stories claiming that China’s economy, one of New Zealand’s prominent clients, is improving.

NZ’s Q4 GDP declined to -0.6% QoQ earlier in the day, falling short of market expectations of -0.2% and prior estimates of 2.0%. Moreover, the YoY statistics decreased to 2.2% from 6.4% in earlier readings, and 3.3% projected. When Anthony Walker, a director of sovereign ratings at S&P for Australia, New Zealand, and the Pacific, is quoted by Bloomberg as saying that “New Zealand’s credit grades with S&P Global Ratings could come under pressure if the nation’s current account deficit remains too big,” the figures become even more concerning.

The country’s current account deficit decreased from $-10.2 billion in Q3 to $-9.45 billion in Q4. The current account-to-GDP ratio, however, declined to -8.9% from -7.9% before and -8.4% according to market expectations.

As a result of the impact of US banks Silicon Valley Bank (SVB) and Signature Bank, the most recent worries are coming from Europe’s G-SIB, a global systemically important bank, Credit Suisse.

USD/CAD Price analysis: Pressure remains on the 1.3690 support level.

While it reverses the largest daily gains a week early on Thursday morning in Europe, USD/CAD retains lower ground at 1.3750. As a result, the Loonie pair prints recent modest losses while fading the previous day’s recovery of a three-week-old rising support line.


In addition to the USD/CAD pair failing to recover from the crucial short-term support, the declining positive bias of the MACD signals and the RSI (14) line’s downward movement, which is not oversold, give the bears of the trend above optimism that they may poke the 1.3690 level.

The 100-bar and 200-bar Exponential Moving Averages (EMAs), located respectively at 1.3660 and 1.3585, may then challenge the USD/CAD bears.

The 50% Fibonacci retracement level of the pair’s February-March gain, close to 1.3565, also serves as a downside filter.

On the other hand, a downward-sloping resistance line from March 10 is key for USD/CAD buyers to monitor throughout the pair’s future ascent since a clean breach of it might swiftly renew the year 2023 high, which is now at 1.3860.

The EUR/USD is skating on thin ice at 1.0600 after Credit Suisse upsets ECB hawks.

Before the European Central Bank’s (ECB) Monetary Policy Meeting, EUR/USD picked up bids to 1.0600 as it reduced the most daily loss in over six months. Yet, after the Credit Suisse catastrophe, traders have mostly avoided the critical currency pair in recent hours as they question the hawkish fears about the old continent’s central bank.

Reuters reported a person with knowledge of the situation on Wednesday; according to Reuters, European Central Bank (ECB) officials are inclined to raise interest rates by 50 basis points (bps) on Thursday. The report said that the Governing Council wants to maintain its credibility by staying within the 50 bps rate rise after consistently stating that this was its objective. Policymakers anticipate inflation to continue too high in the Eurozone, notwithstanding the crisis in the banking sector.

It should be mentioned that the Credit Default Swaps (CDS) of the European central bank Credit Suisse were pushed. The financial markets Wednesday crisis was started by the Saudi National Bank’s decision not to inject extra cash into the bank. The information that European Central Bank (ECB) representatives approached banks to inquire about exposures to Credit Suisse added to the negative mood.

Due to Credit Suisse’s status as a G-SIB (globally systemically important bank) and the recent failures of Silicon Valley Bank (SVB) and Signature Bank in the US, the bank’s problem has become essential to the global financial industry.

USD/JPY bears assault 133.00 amid stable rates, as Credit Suisse turbulence looks far from done.

The USD/JPY loses some of its late Wednesday’s corrective rebound from a one-month low as it records slight losses at 133.00 and falls for a second straight day in the early hours of Thursday.


In doing so, the Yen pair disregards the US Treasury bond rates’ most recent inactivity and the attempts made by international governments to alleviate the concerns felt by the financial markets due to the Credit Suisse disaster. The positive Japan statistics and diminished faith in the Federal Reserve’s (Fed) hawkish tilt may be the cause.

The merchandise trade balance increase totals -897.7B compared to -1,069.4B experts’ projections and -3,498.6B previous readings, together with Japan’s January machinery orders of 9.5% MoM vs. 1.8% projected and 1.6% previously, weigh on the USD/JPY pair.

Further news from Reuters that claims Credit Suisse is considering borrowing up to CHF50 billion from the SNB to increase liquidity get significant attention and give USD/JPY bears a break. The information that American banks are less susceptible to the Credit Suisse scandal may also fall under this heading. Also, the Bank of England’s (BoE) emergency negotiations and market chatter indicating that the Federal Reserve (Fed) and European Central Bank (ECB) would not have an instant negative response during their monetary policy meetings moderated the initial risk aversion.

Please click here for the Forex News Updates from 15 March, 2023.