USD fans need to be patient. Overview for 20.03.2023
EURUSD starts the week quite reservedly. The current quote is 1.0670.
It seems that for a few days, we have been hearing of just the US and EU statistics and nothing else. The flow of this news is so strong that investors fail to take account of everything.
The final CPI in the Eurozone in February dropped to 8.5% y/y as expected. Base inflation remained at 5.6% y/y. While the first report is more or less satisfactory, the second one allows for no optimism as base prices remain high and may start growing at any moment.
The situation with prices will remain the reason for the ECB to go on with the interest rate increases. In such circumstances, the threatening banking crisis does not look that scary.
Industrial production in the US in February demonstrated no changes after growth of 0.3% m/m previously. A small increase had been expected, but high prices hindered it. The capacity utilisation rate remained at 78%, which is not bad.
The prelim CCI by Michigan University in March demonstrates a decline to 63.4 points from 67 points previously. This is logical, considering the tension in the banking sector.
Today is going to be a quiet day in terms of macrostatistics. EURUSD will be saving power until Wednesday when the Fed’s meeting will close.
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