Reasons for USD weakness: - US2Y reached its max at around %5 which already price no more hike or maybe one last %0.25 hike by the FED - PMI, consumer sentiment, personal spending, PCE price index are going back down - SVB and other banks issue was backed up by Gov authorities which reassured market. - ECB not prepare to stop rate hike which reinforce the EUR and negatively impact USD
Things to monitor: - China Caixin PMI reaching 50. soon to be in contraction which means less manufacturing activity which might affect price.
Final thought: - Market is trying to anticipate FED pivot, SVB bank issues didnt spread to the whole banking system. 2Y yield going down which shows an anticipation of no more rate hike. S&P continue its bullish trend since USD becoming less appealing and EUR strength is showing on DXY and participate at the USD weakness. I will need to see this USD weakness to translate in the price action on gold with break of trendline around level 1985. Also , JOLTS, Trade balanc and non-manufacturing PMI might affect fundamentals in the next few days.