No Major Data Releases Today – ECB President Lagarde and Fed's Bostic and Cook Will Speak

In focus today The week starts out without any major data releases today. ECB president Lagarde and Fed's Bostic and Cook will speak today.

Hang Seng Index: Potential Currency War May Kick Start Another Bearish Leg

In the past two weeks, China, and Hong Kong benchmark stock indices (CSI 300, Hang Seng Index, Hang Seng TECH Index & Hang Seng China Enterprises Index) have traded sideways after recording gains of between +16% to +24% from their respective early February lows to recent mid-March highs.

Crypto Market Comes to Life

The crypto market cap rose 4.5% over 24 hours to $2.56 trillion, roughly where it was a week ago, with an active rally over the last three days.

Australian Dollar Stabilizes, Consumer Sentiment Next

The Australian dollar has started the week with slight gains, after sliding 0.86% on Friday. In the European session, AUD/USD is trading at 0.6530, up 0.24%.

Sunset Market Commentary

The yuan’s sharp rebound this morning triggered some attention, if only because other news was so limited today. USD/CNY shot up last Friday on signals that Chinese authorities loosened their grip on the 7.2 handle it defended for several months. Clearly they weren’t expecting nor hoping for such an abrupt move.

Focus on US and Swedish Data Today

From the US, durable goods orders are due for release for February and Conference Board will release its consumer confidence survey for March. Consumer confidence has improved gradually over the winter as slower inflation supports real incomes.

FTSE 100 to Benefit from Improved Commodity Appetite

If commodities perform well, the British FTSE 100 – heavy in energy and mining stocks – should also see a boost. The index rebounded more than 3% since last week, as some investors divest from the US and European stocks that trade near record to invest in British blue-chips that trade with around 50% discount to their Western peers.

Fed Speakers Covered Full Spectrum of Intra-FOMC Views

Fed speakers covered the full spectrum of intra-FOMC views. Fed’s Goolsbee supports the median view of three rate cuts, but wants to see more progress with especially housing inflation puzzling the outlook. Fed’s Cook also advocated a cautious approach as the disinflation process has become more uneven.

Australian Dollar Edges Higher, CPI Next

The Australian dollar has extended its gains on Tuesday. In the European session, AUD/USD is trading at 0.6557, up 0.26%. On today’s data calendar, the US will release two tier-1 events. Durable goods orders are expected to rebound with a 1.1% gain in February, after a 6.1% slide in January. The Consumer Board consumer confidence index is expected to tick up to 107 in February, up from 106.7 in January.

Bitcoin tops $71K, about to retest highs

Bitcoin has once again surpassed the psychologically important 71K. The main intrigue of the next few days is the ability to overcome the previous highs at $73.7K. Strengthening above $75K will make the growth scenario up to 95.5 workable. But until then, one should be prepared for a re-intensification of selling in the first cryptocurrency.