 Last week, investors appeared to view the banking crisis as well-contained, pushing it into the rearview mirror. Confidence saw a revival, resulting in significant gains for major global stock indexes. In tandem with the lower-than-anticipated inflation figures from the US, market sentiment underwent a notable shift, paving the way for a fresh start in Q4, with a renewed focus on economic data and interest rate projections.. Yen, Dollar, and Swiss Franc, typically seen as safe-haven currencies, emerged as the weakest performers last week. Their late recoveries on Friday likely indicate month-end adjustments rather than a genuine return to risk aversion. On the other hand, Canadian Dollar was the top performer, benefitting from a surge in oil prices, followed by New Zealand Dollar, British Pound, and Australian Dollar. Euro's performance was mixed but leaned more towards strength. With no meetings scheduled for Fed or ECB in April at the outset of Q2, the current risk-on trend has room to continue. This ongoing development could further restrain Dollar's rebound. The main question now is whether commodities will switch positions with their European counterparts. It's also important to keep an eye on Bitcoin, Gold, and oil prices, as their movements could confirm trends in stocks and currencies. |
