# Sterling rises as investors rethink U.S. rate-hike path after SVB collapse | Financial Post

> Sterling rose 0.4% to $1.2089 on March 13 after the collapse of Silicon Valley Bank raised expectations that the Federal Reserve would slow its rate hikes. HSBC agreed to buy SVB's UK arm for one pound, and the Bank of England said the UK banking system was sound.

- Date: 2023-03-13 · published 2023-03-13T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/37126-sterling-rises-as-investors-rethink-u-s-rate-hike-path-after-svb-collapse
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of slower Fed tightening weaken the dollar, which tends to support dollar-priced commodities. Banking stress also adds volatility to financing for feed trade.

## Read by commodity

- DXY: bearish ▼
- GBPUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-10-09 | [Dollar drifts downward as investors cling to stimulus hopes \| Financial Post](https://feedsoft.ai/events/50560-dollar-drifts-downward-as-investors-cling-to-stimulus-hopes-financial-post.md) | -0.3% | -1.9% |
| DXY | 2023-03-13 | [Dollar slides as Fed rate hike outlook tumbles after SVB collapse](https://feedsoft.ai/events/37051-dollar-slides-as-fed-rate-hike-outlook-tumbles-after-svb-collapse.md) | +0.3% | -1.6% |
| DXY | 2020-02-25 | [U.S. dollar falls as expectations of a Fed rate cut rise \| Financial Post](https://feedsoft.ai/events/54775-u-s-dollar-falls-as-expectations-of-a-fed-rate-cut-rise-financial-post.md) | -0.5% | +7.4% |
| DXY | 2021-10-28 | [Dollar falls on euro strength after ECB meeting as rates move \| Financial Post](https://feedsoft.ai/events/44744-dollar-falls-on-euro-strength-after-ecb-meeting-as-rates-move-financial-post.md) | +0.6% | +2.5% |
| DXY | 2025-08-28 | [Pound Sterling rises against US Dollar as Fed Willians hints potential rate cuts](https://feedsoft.ai/events/23594-pound-sterling-rises-against-us-dollar-as-fed-willians-hints-potential-rate-cuts.md) | +0.0% | -0.2% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/sterling-rises-as-investors-rethink-u-s-rate-hike-path-after-svb-collapse

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.