Skip to content

EUR/USD Sees Modest Gains Amid Eased Banking Sector Fears

The EUR/USD pair experiences modest gains as easing banking sector fears and positive German IFO data boost investor sentiment.

Euros and Dollars
Euros and Dollars

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.