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CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

Trading Insights: It’s crunch time

Copy of Blog Images - Skilling (55)

MARKET TALK

What is a credit crunch?

When banks are not comfortable lending money because of increased economic risk

  • Increasing interest rates are meant to “cool” an economy after a long period of economic growth because of low interest rates
  • During periods of high inflation, such as the current situation, Central banks are happy to see a “credit crunch” because less borrowing can serve to help cool the economy
  • The side effect is that some companies, including banks, may end up failing

A credit crunch can also be seen as a major economic turning point, and during these turning points, market volatility increases as investors adjust positions to the new situation

Today’s Economic Events

Time: GMT+0 Country/Region Economic Indicator Previous Forecast Actual
10:00:00 AM Germany ZEW Economic Sentiment Index MAR 28.1 19.1 -
12:30:00 PM Canada Inflation Rate YoY FEB 5.90% 5.20% -

Cross asset bullet points:

Gold trades above $2,000 psychological level, opens gate for further gains

  • Gold hits fresh highs near $2,010 per ounce
  • Increased prospects for a restart of the September - January uptrend
  • Upside prospects could be seen towards the $2,075 area
  • Downside support seen above the $1,912 area

WTI Crude Oil at fresh year lows

  • Oil prices remain at risk of further downside, increased oil supplies and fears of global economic slowdown adds to the recent downside pressure on price
  • Downside prospects increases after the support at $71 failed to hold
  • Next important downside support spotted near the $58 lower extension
  • Upside risk for short sellers seen above $78.60

Not investment advice. Past performance does not guarantee or predict future performance.