This is what you need to know to trade today monday march 13:
The US dollar has started the week under strong selling pressure, with markets reassessing the Federal Reserve’s upcoming monetary policy action following the collapse of Silicon Valley Bank (SVB). The 10-year US Treasury yield falls 0.7% below 3.7% after Friday’s decline of 6% and the DXY Dollar Index remains in negative territory around 104.00 in early January. the European session. No relevant macroeconomic data will be published on Monday.
As the Fed raised interest rates, the value of long-term bonds captured by the SVB during the Fed’s ultra-low interest rate regime kept falling. With startups starting to withdraw funds held by the SVB due to rising borrowing costs, the bank faced a capital crisis and announced last Wednesday that it would sell more than $2 billion worth of new holdings. to solve the lack of liquidity. This decision caused companies and depositors to rush to withdraw their money from the bank, which caused the collapse of the SVB on Friday.
Over the weekend, the Federal Deposit Insurance Corporation (FDIC) seized control of New York-based Signature Bank. Meanwhile, US authorities launched emergency measures on Sunday to prevent collateral damage to the banking system. Regulators have assured clients that they will have access to all their deposits from Monday. In addition, the Fed introduced a new facility that will provide loans of up to one year to institutions that were affected by the SVB bankruptcy.
According to the CME Group’s FedWatch tool, markets currently price a 25 basis point rate hike at the next FOMC meeting at 96%. Earlier in the day, “in light of the recent tensions in the banking system, we no longer expect the FOMC to carry out a rate hike at its March 22 meeting, with considerable uncertainty about the way forward after March,” Goldman Sachs said.
He EUR/USD extends its recovery first thing on Monday and reaches its highest level in a month above 1.0700. At time of writing, the pair is up 0.75% on the day at 1.0720.
He GBP/USD It maintains its bullish momentum and is trading in positive territory around 1.2100. HSBC UK Bank plc has recently announced that it has acquired the UK unit of the SVBSilicon Valley Bank UK Limited.
Pressured by the general weakness of the US dollar, the pair USD/JPY fell sharply during the Asian session before staging a technical correction. At time of writing, the pair is down 0.4% on the day at 134.45.
The price of gold it has benefited from risk aversion in the markets and falling US Treasury yields. XAU/USD opened the week gapping higher and reached its highest level since early February at $1,894 before pulling back below $1,880.
After the strong drop registered during the past week, the Bitcoin it rallied strongly over the weekend, gaining nearly 8% on Sunday. BTC/USD is up more than 1% on the day, up to $22,550. He ethereum It was up nearly 10% over the weekend and ended up closing out the week in positive territory. ETH/USD continues to rise and rises 1.7% to $1,620.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
