Another chaotic post-FOMC session – North American Session Market Wrap for March 19

Log in to today's North American session Market wrap for March 19

After yesterday's FOMC session, the market experienced a significant shift.

The previous trends benefiting the US Dollar and Crude Oil have now eased. Israeli Prime Minister Netanyahu's latest address suggests that the ongoing conflict could end sooner than anticipated.

This major change, combined with the global Central Banks' shift toward a more hawkish stance—particularly from the Bank of England and the European Central Bank, which are now signaling potential interest rate hikes in coming meetings—contrasts sharply with the cuts and pauses that were previously expected before the recent surge in oil prices.

One key consideration is that if the conflict does conclude earlier than expected, Oil prices could sharply decline (though not as low as they were previously). This would likely lead to a reduction in inflation expectations and a decrease in anticipated rate hikes, creating even more uncertainty for traders.

Metals have been sharply declining due to the more hawkish policies from Central Banks, along with global stock indexes. However, following Netanyahu’s press conference, WTI and Brent crude prices fell by nearly 10%, easing some pressure on global assets.

The US stock markets made a comeback, coming close to positive territory after a dismal pre-open session, but they failed to maintain their highs. This shift is still significant.

Gold is now trading below $4,700, Platinum below $2,000, and Silver dropped by 4% in the session to $72.

Expect wild fluctuations in the metals market in the upcoming sessions. An in-depth analysis of metals will be provided tomorrow morning.

Gold is still back below $4,700, Platinum, below $2,000 and Silver down 4% on the session to $72 – Expect wild movements in upcoming sessions for metals. An in-depth Metals analysis will be coming up tomorrow morning.

Read More:

• The US Dollar dives after the FOMC, long-term reversal incoming? – Dollar Index (DXY) outlook
• Wall Street gaps down, weak dip-buying attempts – Dow Jones and US Stock Market Outlook
• Bank of England leaves interest rates unchanged as war and rising energy prices complicate inflation fight

The heatmap is looking much healthier than it was this morning, but doubts still remain – Defensive Stocks have in general struggled more and rebounds have been more chaotic.

Tomorrow's session will be essential for Stock bulls!

Talk about a chaotic session today! Oil was once again the main culprit, notably after making a pump-and-dump after he announcement that the US will not ban Oil exports.

It closes down 5% in the past 24 hours, around $95 (for WTI).

Metals and Crypto also had to kick the can down the road despite the better afternoon mood, with only Stocks profiting from the better War news.

The FX perf is almost an exact mirror of what happened yesterday, with Antipodeans easily recovering what they had lost previously, with the Canadian Dollar and US Dollar on the other side of the performance spectrum.

The Yen however, is back on top shortly after USD/JPY reached new highs – Talk about a reversal!

If the USD opens lower tomorrow, you can expect these flows to persist.

After today's insane session, tomorrow should be more contained.

Expect some movement around Antipodean currencies with the NZD trade data and PBoC Rate Decision coming up soon.

Tomorrow will also see the release of PPI in Germany and Retail Sales for Canada.

Keep a close eye on sentiment and Middle East news.

Safe Trades!

Follow Elior on Twitter/X for Additional Market News, interactions and Insights @EliorManier