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As panic ensued following the collapse of Silicon Valley Bank, the U.S. government acted in order to protect the depositors and prevent the appearance of possible contagion in the banking system. Goldman Sachs over the weekend predicted the Fed will not raise interest rates next week as a result of the SVB insolvency.
The DXY started the trading week moving downward with bond yields plummeting, and a USDCAD short was taken risking 20 pips for a potential 43 pips to our first target at 1.3722. Price kept going down after it reached our target level, so we placed our profit stop lower. Our second target was the Asian session low around 1.3709 and expecting a bounce as we neared the figure at 1.3700 we closed the trade. Price continued lower without us… making a significant dip before retracing.
On Tuesday in the U.S. session, Core CPI will be a closely watched figure by traders. Britain has Average earnings and Claimant count change releases pending.
Good luck with your trading!
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