Entering the 3rd week of March, the euro is set to have a significant impact on the market

Hello, I’m Tomoaki.

The cherry blossoms are blooming and it finally feels like spring, doesn’t it ^^

It seems a life of watching charts while hanami (cherry blossom viewing) is about to begin.

Now, I’d like to quickly recap the fourth week of March and then share some thoughts on the fifth week.

3/22
Monday

Last week there was the U.S. FOMC meeting,
and they decided to hold rates at 0–0.25%.
Moreover, FOMC participants continued to expect that rates would remain near zero at least through the end of 2023.
In his remarks, Chair Powell commented on the recent movements in U.S. Treasury yields, saying, "It is important that the accommodative environment will be maintained going forward," and that he would be concerned if the markets became disorderly.
The caution toward U.S. Treasuries and the expectation that rates would stay unchanged were viewed favorably, and U.S. stocks rose.
However, the next day, stock prices began to fall.
There appears to be selling to settle positions after the event, and long-term U.S. yields continue to rise, suggesting ongoing caution.
If interest rates continue to rise, the market will react negatively, leading to further declines in stock prices. U.S. equities are likely to swing in response to rate hikes and Biden’s $1.9 trillion economic plan.
The Nikkei 225 is likely to swing up and down in step with U.S. stocks.

When stock prices are unstable, the forex market will also fluctuate.

Commodity prices have fallen, and while crude oil had been rising under stock-market strength, the upward trend seems to have ended for now.