Introduction:
The US dollar is facing heavy selling pressure as investors re-evaluate the Federal Reserve’s next policy move following the collapse of Silicon Valley Bank (SVB). The benchmark 10-year US Treasury bond yield has declined 0.7% below 3.7% following Friday’s 6% drop. This article will discuss the implications of the SVB collapse on the US dollar and the broader market.
The Impact of SVB Collapse on US Dollar:
The collapse of SVB has left investors questioning the Federal Reserve’s next policy move. The SVB, which is a lender to Silicon Valley’s tech elite, has been hit hard by the recent market volatility, leading to its collapse. This has led to concerns about the impact of the tech sector on the broader market and the US economy as a whole. As a result, investors are reassessing the Federal Reserve’s next policy move, with many speculating that it may hold off on raising interest rates until the economy stabilizes.
US Dollar Index:
The US Dollar Index, which measures the value of the US dollar against a basket of currencies, remains deep in negative territory at around 104.00 early Monday. This is a reflection of the market’s concerns about the Federal Reserve’s next policy move and the broader implications of the SVB collapse.
Benchmark 10-year US Treasury Bond Yield:
The benchmark 10-year US Treasury bond yield has also declined below 3.7% following Friday’s 6% drop. This is a reflection of the market’s concerns about the Federal Reserve’s next policy move and the broader implications of the SVB collapse. As investors wait for the Federal Reserve to make its next move, many are turning to US Treasury bonds as a safe haven asset.
Economic Calendar:
There will not be any high-tier macroeconomic data releases featured in the economic calendar on Monday. This is because the market is currently focused on the Federal Reserve’s next policy move and the implications of the SVB collapse.
Conclusion:
The collapse of SVB has left investors questioning the Federal Reserve’s next policy move and the broader implications of the tech sector on the US economy. As a result, the US dollar is facing heavy selling pressure, and the benchmark 10-year US Treasury bond yield has declined. While there are no high-tier macroeconomic data releases featured in the economic calendar on Monday, the market will be closely watching the Federal Reserve’s next move. As investors wait for the Federal Reserve to make its next move, many are turning to US Treasury bonds as a safe haven asset.
