FPG: Gold bulls broke out, but they also had to fight back. Latest market news: 1. [The Federal Reserve will help. Depositors of Silicon Valley Bank will be able to withdraw all funds on Monday] The Federal Reserve announced a new emergency bank regular financing plan. Depositors of Silicon Valley Bank will be able to withdraw all funds on Monday; the new plan will provide emergency loans for up to one year; be prepared to deal with any possible liquidity. Stress. Comments: On Friday night, Silicon Valley banks sold a large number of U.S. bonds, causing gold to soar. 2. [China and Saudi Arabia reached an agreement and issued a joint statement] Saudi Arabia and Iran held a dialogue in Beijing a few days ago and achieved important results. China and Saudis reached an agreement on March 10 and issued a joint statement announcing that the Saudis agreed to restore diplomatic relations. This dialogue has become a successful practice of the vigorous implementation of the Global Security Initiative. The international community welcomes the reconciliation between the two major countries in the Middle East, believing that China has played a constructive role in properly dealing with the hot issues in today’s world and demonstrated the responsibility of major powers. Comments: Provide a model for the settlement of disputes through peaceful means. 3. [The Federal Reserve: The new financing plan will be provided through the creation of a new bank term financing plan (BTFP)] On March 13, the Federal Reserve said that the new financing plan will be provided through the creation of a new bank term financing plan (BTFP) to banks, savings associations, credit unions and Other qualified depository institutions provide loans for up to one year, mortgaged by U.S. treasury bonds, institutional debt and mortgage-backed securities and other qualified assets. These assets will be valued at face value. BTFP will become an additional liquidity source for high-quality securities, eliminating the need for institutions to sell these securities quickly during times of pressure. Comments: The Federal Reserve is worried about a situation similar to that in 2008, that is, the lack of liquidity in the market, which causes institutions to sell financial assets in exchange for liquidity. After learning the lessons of 2008, the Federal Reserve takes care of liquidity to prevent financial institutions from being overwhelmed by “unrealized gains and losses”. But the key is still the attitude of the Ministry of Finance. 4. [The French Senate adopts the retirement system reform plan to extend the retirement age to 64 years old] On the 11th local time, the French Senate voted to adopt the retirement system reform plan with 195 votes to 112 votes against. The key measure of the program is to gradually raise the retirement age from 62 to 64. According to Reuters, after the French Senate passes the bill, a joint committee may review it on the 15th; if the committee reaches consensus on the text of the bill, the two houses are expected to hold a final vote on the 16th. Comments: The reform of the retirement system is an important issue of Macron’s government, and it is basically in the end. 5. [The unemployment rate of 311,000 new jobs in the United States rose to 3.6% in February] Data released by the U.S. Department of Labor on the 10th showed that 311,000 new jobs were added to the non-agricultural sector in the United States in February, with an unemployment rate of 3.6%, an increase of 0.2 percentage points month-on-month. Although the number of new jobs in February narrowed significantly compared with the previous month, this figure is still generally understood as “strong” by the market. The revised data shows that 504,000 new jobs were created in the non-agricultural sector in the United States in January this year. Comments: Data from February shows that the fundamentals of the U.S. job market are still at a healthy level, and many employers are still eager to recruit. In the face of continued high inflation, the Federal Reserve may still increase interest rates. 6. [The Bank of Japan maintains ultra-loose monetary policy] The monetary policy meeting of the Bank of Japan decided to continue to maintain the short-term interest rate at a level of negative 0.1%, and to maintain the long-term interest rate at about zero by purchasing long-term government bonds. The upper limit of the long-term interest rate, which is now “about 0.5%”, remains unchanged. Comment: The yen may weaken for a long time. 7. [Saudi Arabia is close to reaching a $35 billion Boeing aircraft order] On March 11, people familiar with the matter said that the Shatt Public Investment Fund is close to reaching a deal to purchase Boeing jets, with an order value of $35 billion, which is expected to involve up to 100 or more flights. It may include confirming orders and future purchase options. It is reported that these aircraft will be used in Saudi Arabia’s newly established national airline fleet. Comments: It means more to spend money to appease. Opinions of FPG Special Analyst Nanshi: Gold soared on Friday due to the collapse of U.S. bond yields. Obviously, it has nothing to do with non-agricultural. In addition, the collapse of the U.S. bond yield may be related to the liquidity crisis of Silicon Valley banks. It is understood that 53% of Silicon Valley’s assets buy U.S. bonds, which collapsed due to undue selling. According to the latest news, the financial regulator has closed the Silicon Valley Bank and taken over the bank’s deposits. The headquarters and all branches of the Silicon Valley Bank will reopen on March 13, 2023. Investors should pay attention to the liquidity of the US dollar in the future, and gold bulls should be vigilant. FPG special analyst Dawson’s opinion: Yen: The Bank of Japan announced that the easing policy framework would remain unchanged as expected by most market participants, with the benchmark interest rate maintained at -0.1%, and the yield curve control (YCC) fluctuation range maintained at 0% ±0.5%. At the last meeting of Hirohiko Kuroda, he did not adjust the YCC parameters as expected by a few people to relieve the pressure on the next president, Kazuo Ueda. Today’s trading plan is short at the high point, the first pressure position is 135.700, and the target is 133.100. FPG special analyst Dave’s opinion: Crude oil: The United States has the ability to completely replace Russian oil and gas in the European market. At the same time, U.S. President Biden will stop or limit oil mining on up to 13 million acres in Alaska and the Arctic Ocean. On the other hand, Saudi Aramco said that the market investment in oil is still insufficient, which makes it difficult to ensure a full supply to meet medium- and long-term demand in the future. Today’s operation strategy is much lower, with support position 75.8 and target position 78.0. FPG special analyst Yue Lin’s opinion: The unemployment rate of the non-agricultural employment report in February unexpectedly rebounded, and the salary growth rate was lower than expected, weakening the previous market’s expectations for the future strong monetary policy of the U.S. Federal Reserve. However, the yield on 2-year U.S. bonds fell by nearly 30 basis points and nearly 50 basis points from Thursday’s high, The largest two-day decline since the crisis and the collapse of Silicon Valley Bank and its takeover by the Canadian Financial Protection and Innovation Department caused investors to panic, and U.S. stocks closed down again. Personally, I believe that in the future, U.S. stocks will continue to fall under the continuous impact of Silicon Valley Bank. The above analysis is only for the views of market researchers and is for reference only and is not Regarded as a specific investment suggestion. #Forex #trading #tradingforex