To panic or not to panic? That is the question as we approach the closing stages of the week.
We're being thrown a curveball as a selloff in equities and surging bid in bonds is taking hold, as traders also hit the reset button in terms of Fed pricing on the week. This comes amid the whole SVB situation, as outlined here.
In FX, it looks like traders are still in their own little world for now and are awaiting the US jobs report before proceeding next.
So, who's got it right? Do the major currencies have some catching up to do or is the fear in broader market sentiment being overblown right now? It comes down to whether SVB has sufficient capital to offset losses and continue to operate or if the bank will be forced to shut down and be bought out by a competitor.
Throw in the volatility that may come from the non-farm payrolls data and it is going to set up a chaotic end to the week.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
