EUR/USD Holds Onto Gains Near 1.0800 on Easing Banking Sector Fears
Alex Boltyan | Mar 27, 2023 01:57PM ET
The EUR/USD pair holds onto modest daily gains just below 1.0800 on Monday as easing banking sector fears lifted investors’ sentiment, while German IFO data showed improvement in expectations in March.
At the time of writing, the EUR/USD pair is trading at 1.0790, 0.3% above its opening price. On the other hand, the US Dollar Index (DXY) is trading 0.2% down on the day at the 102.90 area.
News that First Citizens Bancshares Inc. has bought defunct lender Silicon Valley Bank (SVB) eased concerns surrounding the banking crisis, helping the sector’s equities rebound.
Germany reported the IFO Business Climate Index, which came in at 93.3, beating the consensus forecast of 90.9 and increasing from the previous figure of 91.1. The report also showed that the Current Assessment and Expectations indexes also came in better than expected at 95.4 and 91.2, respectively.
Across the pond, US bond yields advance sharply on Monday amid the better market mood. The 10-year note yield stands at 3.51%, up by over 4% on the day. In addition, Wall Street indexes opened higher, with the S&P 500 and the Dow Jones trading in the green, although the Nasdaq has dipped into the red.
From a technical perspective, the EUR/USD pair maintains a positive short-term bias, according to indicators on the daily chart, while the price remains above its main moving averages despite the recent downward correction.
In terms of technical levels, the EUR/USD needs to decisively break above 1.0900 to reignite the bullish momentum, targeting the February high at 1.1032. On the flip side, immediate support levels could be found at the 1.0710-00 zone and the 20-day SMA at around 1.0675.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.