EUR/USD Gains Near 1.0800 Boosted by Investor Sentiment
The EUR/USD pair is holding onto modest daily gains just below 1.0800 on Monday. This comes as easing banking sector fears lift investor sentiment, and German IFO data shows improvement in expectations for March.
US Dollar Index (DXY) Trades Lower at 102.90 Area
When writing, the EUR/USD pair trades at 1.0790, 0.3% above its opening price. Meanwhile, the US Dollar Index (DXY) trades 0.2% down on the day at 102.90.
Banking Crisis Fears Subside with First Citizens Bancshares-SVB Acquisition
News that First Citizens Bancshares Inc. has purchased defunct lender Silicon Valley Bank (SVB) has eased concerns surrounding the banking crisis. This development has helped the sector's equities rebound.
German IFO Business Climate Index Beats Expectations
Germany reported its IFO Business Climate Index at 93.3, exceeding the consensus forecast of 90.9 and rising from the previous figure of 91.1. The Current Assessment and Expectations indexes also surpassed expectations at 95.4 and 91.2, respectively.
US Bond Yields Rise and Wall Street Indexes Open Higher
Across the pond, US bond yields advanced sharply on Monday amid a better market mood. The 10-year note yield is 3.51%, up by over 4% daily. In addition, Wall Street indexes opened higher, with the S&P 500 and the Dow Jones trading in the green, although the Nasdaq dipped into the red.
Technical Outlook for EUR/USD Remains Positive
From a technical perspective, the EUR/USD pair maintains a positive short-term bias according to indicators on the daily chart. The price remains above its main moving averages despite the recent downward correction.
Key Technical Levels for EUR/USD
Regarding technical levels, the EUR/USD must 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.