- USD traded lower as the ongoing turmoil in the financial sector boost the expectation of a less aggressive rate hike by the Federal Reserve despite stronger than forecast data.
- The market sentiment also improved after a number of U.S. banks teamed together to inject USD 30 billion in deposits into the first Republic bank.
- US jobless claims fell by more than expected to 192,000, from 212,000, below the 205,000 expectations, highlighting strength in the labor market. US housing starts also climbed to a 5-month high.
- Wholesale inflation, as measured by the producer price index, fell by a more-than-expected 4.6% year on year, well down from 5.2% in January. Cooling wholesale inflation usually points to a slowdown in consumer inflation, which would take pressure off the Fed to raise rates aggressively.
- Retail sales fell by -0.4% month on month, more than expected after rising 3.2% in January. The fall in sales suggests that consumers are reining in spending as interest rates rise.
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