The US dollar has attracted a safe haven bid at the start of the week, weighing on XAG/USD. Major lenders came under pressure after Nomura and Credit Suisse warned of significant losses. The price of silver is on the back foot as the US dollar continues to move higher despite the shallow daily correction on the DXY. At the time of writing, the DXY is trading higher by 0.14% while XAG/USD is down by over 1.3% on the day so far. A mixed start to the week as investors brace for the Nonfarm Payrolls event at the end of the week, as well as quarter-end and for any ramifications from the hedge fund defaults in the banking sector. Wall Street’s main indexes opened lower on Monday after a surge in the previous session, as global banks, such as Nomura, said they faced potential losses from a hedge fund’s default on margin calls. Archegos Capital risk sends US dollar higher Major lenders came under pressure after Nomura and Credit Suisse warned of significant losses due to exposure to a single client who failed to meet margin calls, later identified by reports as New York City-based Archegos Capital. Shares of both Nomura (NMR) and Credit Suisse (CS) fell nearly 14% as the companies unwind their Archegos positions. Soon after the shares dropped, the US dollar sprung into action as US bond yields rallied, sinking the precious metals to the lows of the day. Negatively for gold and silver, the greenback is attractive under such circumstances considering the implications for US dollar liquidity in the financial sector. The Archegos impact remains limited for now, given that the effect was concentrated on a few companies, although markets will be quick to scrutinise the fragility of the financial sector as a whole due to the contagion risk. When the banking sector dropped in 2020 as the world responded to the covid pandemic and the US dollar funding markets came under stress, gold and silver prices fell hard on the knee jerk as the markets scrambled for dollars. Silver dropped by as much as 38% between the 24th Feb and 16th March. Silver technical analysis Meanwhile, from a technical perspective, the price of silver is breaking out of sideways consolidation, embarking on fresh lows from within the late Feb bearish trend. The technical environment is bearish while the price is diverging away from the 10-day and 4-hour EMAs. A break of $24.4105, or the 25 March lows, $24.1900 will be key according to the weekly time frame as a last level of resistance. $24.0180 comes thereafter as prior supportive weekly lows that led to a huge rally and the ultimately, the record highs scored in early Feb of this year. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US Pres. Biden: Could still see a setback in US vaccination program FX Street 1 year The US dollar has attracted a safe haven bid at the start of the week, weighing on XAG/USD. Major lenders came under pressure after Nomura and Credit Suisse warned of significant losses. The price of silver is on the back foot as the US dollar continues to move higher despite the shallow daily correction on the DXY. At the time of writing, the DXY is trading higher by 0.14% while XAG/USD is down by over 1.3% on the day so far. A mixed start to the week as investors brace for the Nonfarm Payrolls event at the end of… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.