International benchmark Brent lost 5% today, resuming the gains and sliding below $80 for the first time in two months amid growing concerns about economic recession in the US.

The Silicon Valley collapse saga continues to hurt prospects of US economic activities, with policy tightening and higher interest rates blamed for the collapse. 

Brent Prices

Brent fell 5% to $78.39 a barrel, the lowest since January 9, with a session-high at $83.42. 

Brent rose 1.5% on Friday, the first profit in four days as the dollar loses ground. 

Silicon Valley Bank Collapse

The bank collapsed due to higher US interest rates which hover around September 2007 highs, with the bank failing to cover despots even after selling some of its reduced treasury investments following the Fed's hikes.

Banking experts notice that such a collapse could've been avoided with better risk management for interest rates.

US authorities are attempting plans to reinforce confidence in the banking system and prevent the spread of the infection, with New York authorities already closing the Signature bank, with another on the way. 

Dollar fell in European trade for the third straight session against a basket of major rivals, plumbing four-week lows as US 10-year treasury yields swoon. 

The developments come after the collapse of the Silicon Valley Bank, which triggered concerns for the economy and might force the Fed to slow down the pace of policy tightening. 

The Index

The dollar index fell over 0.9% to 103.68, the lowest since February 16, with a session-high at 104.68. 

The index lost 0.6% on Friday, the second loss in a row as pricing for US rate hikes changed for March. 

Mixed US labor data changed pricing for the US March rate hike once more, with markets expecting a 28% chance only for a 0.5% rate hike, and a 72% chance of a 0.25% rate hike.

US yields

US 10-year treasury yields tumbled 8% to six-week lows at 3.418%, hurting investments in the dollar. 

It comes after the collapse of the Silicon Valley bank, which caused ripples in the US banking system and hurt prospects of policy tightening by the Fed. 

Silicon Valley Bank Collapse

The bank collapsed due to higher US interest rates which hover around September 2007 highs, with the bank failing to cover despots even after selling some of its reduced treasury investments following the Fed's hikes. 

Banking expects notice that such a collapse could've been avoided with better risk management for interest rates. 

Euro rose in European trade against dollar for the third straight session, hitting four-week highs on speculation about the European Central Bank's meeting this week, while European economic activity improves in the fourth quarter of the year.

The greenback sharpened its decline to month lows after US authorities intervened to limit the ramifications of Silicon Valley Bank's collapse, and amid prospects the Fed might take a less bullish path in the future. 

EUR/USD rose 0.4% to 1.0737, the highest since February 15, with a session-low at 1.0663, after rising 0.6% on Friday, the second profit in a row following mixed US labor data.

The ECB

The European Central Bank is convening this week to discuss policies with investors expecting a 0.5% rate hike for the third time in a row.

ECB President Christine Lagarde vowed to do all that's required to bring prices back to stability.

It's expected the ECB will take a bullish tone this week after strong euro zone consumer prices data. 

Analysts expect the ECB to hike interest  rates by successive 0.5% hikes in March, May, and June, with a 0.25% hike in July. 

The Dollar

The dollar index fell 0.9% on Monday, sharpening losses for the third session and hitting month lows at 103.68 against a basket of major rivals.

Mixed US labor data changed pricing for the US March rate hike once more, with markets expecting a 28% chance only for a 0.5% rate hike, and a 72% chance of a 0.25% rate hike. 

The dollar is extending losses after authorities intervened to limit the ramifications of the Silicon Valley Bank collapsed, asserting all clients will get their deposits back starting today.

Such a collapse hurt confidence in the US banking system and raised the odds the Fed will take a more bearish stance in policies.

Yen declined on Friday following an expected step by Bank of Japan on monetary policies. 

The BoJ predictably maintained rates at minus 0.10%, same as previous meeting. 

The BoJ continues to contradict other global central banks which continue to raise interest rates to control spiking inflation. 

On trading, USD/JPY fell 0.95% to 134.8 as of 19:41 GMT. 

Loonie

CAD/USD fell 0.1% as of 19:41 GMT to 0.7227. 

The decline comes despite positive data that showed the Canadian economy added 21.85 thousand jobs in February, while analysts expected an addition of 8.5 thousand only. 

Unexpectedly, Canada's unemployment stabilized at 5%, same as before, while analysts expected a rise to 5.1%. 

The Pound

UK GDP grew by 0.3% m/m last month, while analysts expected a 0.1% growth rate. 

GBP/USD rose 0.85% to 1.2025 as of 19:43 GMT. 

The Dollar

The dollar index fell 0.7% as of 19:26 GMT to 104.6, with a session-high at 105.3, and a low at 104.04. 

US unemployment rose to 3.6% in February from 3.4% in the previous reading, which was the lowest since 1969.

The US economy added 311 thousand new jobs in February, beating estimates of a 224 thousand increase, while slowing down from a 504 thousand increase in January.