On Thursday, the trading activity appeared to be subdued following the release of several favorable economic indicators. However, a slight uptick in weekly unemployment claims in the United States exceeding 200,000 for the first time since January prompted the short-term returns to plummet, resulting in concerns among investors. This has consequently led to apprehensions of a prospective decline in the stocks, particularly with the significant release of the United States job market data looming over.
Alas, the likelihood of an uneventful trading session came to a halt due to a significant decline in banking shares. The implosion of Silvergate Capital, along with the steep descent of SVB stock, drove the banking sector into obscurity.
Silvergate Capital had played a crucial role as a financial institution for cryptocurrency exchanges in the United States. It remains uncertain as to how another financial institution can be identified to facilitate the transfer of funds between cryptocurrency and fiat currency.
We can expect a rise in the number of existing home sales to 4.19M, surpassing the previous figure of 4.00M. If this prediction materializes, it could be a positive indication for the US housing market. It may also result in an increased demand for the US dollar.
Recent Notes from the Central Bank: The Committee has decided to raise the federal funds rate target range from 4.5% to 4.75%, with a plan to continue increasing it further to bring inflation back to the desired level of 2%. The Committee will keep a close eye on incoming information and adjust the monetary policy stance as needed to achieve its objectives. The decision to increase the target range received the majority vote from the Committee members. The next meeting is scheduled for March 23, 2023.