EURUSD Forex Signal: SVB Collapse, US Inflation, ECB Decision
The focus will be on the upcoming US inflation numbers and the health of the global banking sector.The biggest news in the market is about the collapse of SVB, the 16th biggest bank in the United States. The company failed after experiencing a bank run following its unexpected cash call last week. As a result, there are concerns that other regional and even global banks could fail. In a tweet, Bill Ackman, a billionaire, warned that more banks will fail this week.
Macro data are also moving the EUR/USD pair. On Friday, data by the Bureau of Labor Statistics showed that the country’s labor market was still strong. It created more than 317k jobs in February after it added over 51k jobs in January. The unemployment rate rose gradually to 3.6% while wages grew at a slower pace than expected.
Focus now shifts to the upcoming US inflation data and ECB decision. Economists expect the headline CPI to pull back to about 6%. If they are accurate, it will signal that the Fed needs to continue tightening. The ECB is expected to hike rates by 0.50% when it completes its meeting on Thursday.The EUR/USD pair is still hovering slightly above last week’s low of 1.0525. It is between the ascending green channel and the 25-day and 50-day exponential moving averages .
Therefore, the pair will likely continue retreating as sellers target last week’s low at 1.0525. A move above last Friday’s high of 1.0693 will invalidate the bearish view.
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