EUR/USD plunged on Wednesday on risk-off sentiment as the U.S. banking sector turmoil spread to Europe, calling into question the ECB’s ability to hike rates aggressively tomorrow.

Crude oil has fallen sharply this week, with the banking crisis and excess supply pushing WTI to levels last tested in December 2021.

The S&P 500 sinks as the US banking crisis spreads across the Atlantic, weighing on sentiment. Meanwhile, defensive assets rally on haven demand, with the US dollar up against most of its peers.

Jeremy Hunt extended the energy cap for 3 months while boosting investment incentives and labour supply. Corporate tax incentives offered to counter tax rise

The European banking sector is reeling again with all constituents of the Euro Stoxx index heavily in the red as risk sentiment turns sour.

Spot Gold displayed whipsaw price action following the European open, flirting with the $1900 level. Bears remain hopeful though if gold prices remain below the $1925 handle.

The ECB is set to hike rates by 50 basis points on Thursday despite the ongoing banking sector turmoil, according to one ‘source report’.

The Australian dollar is trading in the green for what could be its 3rd consecutive positive close ahead of some key US economic data. AUD/USD testing 0.67 once more.

Crude oil has steadied so far today after sliding lower to start the week after a bumpy ride for markets with volatility rising as uncertainty remains ahead of the Fed. Will WTI recover?