Talks about the end of dollar and the US banking system blew up on Friday after news emerged that the Silicon Valley Bank collapsed. But on Sunday, US authorities dispelled all fears by introducing new support for banks, which, according to representatives of the Federal Reserve, will be big enough to protect deposits.

Following the emergency meeting, the Treasury Department, Federal Reserve and Federal Deposit Insurance Corporation announced efforts to bolster confidence in the banking system after the SVB collapse raised fears of domino risks and other spillover effects. Concerns intensified on Sunday when state regulators shut down New York-based Signature Bank.

"Today we are taking decisive action to protect the US economy by building public confidence in our banking system," the statement said. "This move ensures that the banking system continues to fulfill its vital role of protecting deposits and ensuring access to credit for households and businesses in a way that fosters strong and sustainable economic growth."

After receiving a recommendation from the FDIC boards of directors, the Fed and the President, Secretary Janet Yellen approved action to allow the FDIC to complete its settlement with Silicon Valley Bank in a way that fully protects all depositors. Depositors are expected to have access to their money as early as today, March 13. No losses associated with the Silicon Valley Bank bailout will be borne by the taxpayer.

"We are also announcing similar action for Signature Bank, which was closed by the state commissioner today. All depositors can expect to get their funds back. As with the Silicon Valley Bank decision, there is no loss to the taxpayer," Yellen said.

Also following the meeting was an announcement from the Fed that it would provide additional funding to eligible depository institutions to help banks meet the needs of all their depositors.

"The US banking system remains resilient and on solid footing, thanks in large part to reforms enacted in the wake of the financial crisis that has provided greater protections for the banking industry. These reforms, combined with today's actions, demonstrate our willingness to take the necessary steps to safeguard depositors' savings," the statement said.

The Fed also announced a new program that offers banks one-year loans on more affordable terms than usual.

A senior official at the Treasury warned that there were other banks that were in a situation similar to SVB and Signature, and the main concern of the regulators was to ensure that depositors were fully protected from the possibility of losing their deposits.

With regards to the forex market, demand for euro intensified after all the news, so buyers have a chance to continue building a new upward trend. The quote only needs to stay above 1.0700 and go beyond 1.0730 as only by that will EUR/USD climb up to 1.0770 and 1.0800. In case of a decline below 1.0700, the pair will head towards 1.0666.

In GBP/USD, buyers also continue to control the market as strong statistics on the UK economy and problems in the US banking system are fueling risk appetite. The quote needs to stay above 1.2090 so that the bullish scenario remains. As such, a breakdown of 1.2140 will trigger a further rise to 1.2180 and 1.2220, while a drop below 1.2090 will prompt a decline to 1.2050 and 1.2020.