Forex Top Team

Pay attention to trends related to US and European financial institutions, stock prices, CDS, etc.

Sources reported that over the weekend, the US authorities were considering additional bank support policies, such as expanding emergency lending facilities for banks. It will be interesting to see if these actions, which seem to have the First Republic Bank in mind, lead to a similar trend of risk caution and retreat on Friday. Deutsche Bank (DB), which unexpectedly announced early redemption of its subordinated bonds, plunged its share price over the weekend, and the price of CDS, which is a guarantee fee for default, soared. Early redemption of Tier 2 subordinated bonds can be said to be a good thing, but the market seems to have reacted rather nervously, and the market is aware of the caution of European and US financial institutions.
Since there are no plans to announce any notable US economic indicators today, it is likely that we will be paying attention to market trends such as stocks and CDS against financial institutions. If the movement of risk caution seems to recede, the dollar/yen pair is expected to recover to the 131-yen level from this morning’s wobble, and further developments are expected.

As an economic indicator for Europe, the German Ifo Business Confidence Index for March will be announced at 5:00 pm. Although the index has shown improvement from the previous survey for five consecutive months, the forecast for this survey is 91.0, which is expected to slow down slightly from the previous survey of 91.1. Of the breakdown, the expected index, which is regarded as important, has improved for five consecutive months as well as the overall, but this time it is expected to slow down to 88.3 from the previous 88.5. There are signs of a decline in business sentiment. If the market slows down and becomes conspicuous, it will lead to concerns about economic slowdown in Germany and the euro zone, and there is a possibility that the euro will be sold.

The euro is expected to trade with a heavy topside. sales perspective.