Following last week’s highly unpredictable event, the financial markets have kick-started the new week in an uplifted state, as US stock index futures are advancing and the Euro Stoxx 50 has opened 1% higher. The US economic report will include the Dallas Fed Manufacturing Business Index, and IFO will yield business disposition data for Germany. Investors will be monitoring the Central Bank’s Peak closely.
Following a bounce back on Friday, the US Dollar Index has been hovering in a modest range above 103.00 during Monday morning trade, as the yields on US 10-year Treasury bonds remain capped at about 3.4%. Various Fed policymakers, in advance of the weekend, but their remark did not appear to have a significant influence on interest rate expectations.
According to CME Group’s FedWatch tool, markets are now pricing in a nearly 70% chance that the FOMC will leave the interest rates stable after another meeting in early May.
Over the weekend, the Federal Deposit Insurance Corporation (FDIC) released a statement announcing that First Citizen BancShares Inc was buying all of SVB’s loans and deposits for ownership of up to $500 million worth of its stock to the FDIC transmitted, Reuters reported. This development made appears to be helping improve risk appetite early Monday.
Forex market technical analysis
Last week, EUR/USD filed gains despite closing off a negative territory on Friday. The pair stays in a strengthening phase below 1.0800 in the European morning. In February, IFO’s Current Assessment Index for Germany is predicted to increase to 94.1 from 93.9.
GBP/USD managed to balance above 1.2200 following Friday’s correction. The pair was trading moderately higher at the time of press at around 1.2250.
The USD/JPY currency pair rose in value thanks to a more positive attitude in the market earlier in the week and traded above 131.00. Data from Japan previously demonstrated that the Compliance Index increased to 96.4 in February, up from 96.1 in January, while the Leading Economic Index rose to 96.6 from 96.5.
Gold was $2,000 on Friday but declined after failing to stabilise above that level. XAU/USD is still under pressure and declined by 0.5% when it was slightly below $1,970.
Over the weekend, Bitcoin remains inconsistent, but it increases more than 25% weekly. Ethereum increased towards $1,800 on Sunday but later went down. Currently, ETH/USD has declined by 1% to $1,750.
