The EUR/USD pair has climbed above the immediate resistance of 1.0860 in the early Asian session. The shared currency pair rebounded firmly after buying interest above 1.0830 in the early New York session. A corrective move in the US Dollar Index (DXY) resulted in a recovery in the Euro after a sheer sell-off.

The downside bias for the major currency pair has not been over yet as investors are anticipating a hawkish stance from the Federal Reserve (Fed) for its next month’s monetary policy.

S&P500 futures showed a stellar recovery on Monday after a gap-down opening despite anxiety among investors ahead of result season. The street is worried about the earnings of commercial banks after the banking fiasco due to the collapse of Silicon Valley Bank (SVB) and Signature Bank. Also, tight credit conditions by US banks must have impacted advances needed by firms for fixed capital working capital management.