Commodity currencies rebound on USD weakness

Commodity currencies rebound on USD weakness

The Bloomberg Dollar Index strengthened yesterday following the release of the Fed’s minutes from the April meeting. The commentary suggested that there are Fed members that are open to discussing bond tapering. The dollar reversed those gains overnight, and is trading lower against most of its G-10 peers. Investors will focus on commentary from the Bank of England’s Deputy Governor and Bank of Canada Governor today.

“I enjoy life when things are happening. I don’t care if it’s good or bad things. That means you’re alive.”
Joan Rivers
  • FX Rates
    May 20, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The Fed Reserve released minutes from its April meeting yesterday that suggested some members of the central bank are willing to discuss tapering of bond purchases. The Bloomberg Dollar Index traded higher on the release, but has since erased gains down only 0.1% overnight.

    GBP

    Sterling is trading higher against a broadly weaker US dollar. Investors will focus on comments from the Bank of England’s Deputy Governor Jon Cunliffe later today.

    EUR
    EUR/USD broke above 1.22, as the greenback trades lower across the board. The currency pair retreated from 4-month highs, still maintaining a modest gain.
    CAD
    USD/CAD retreated on stronger commodity prices, but has held above the 1.21 level. Traders will focus on comments due from the Bank of Canada Governor Tiff Macklem following the central bank's release of its Financial System Review later today.
    ASIA/PACIFIC

    The Australian dollar held on to gains despite a miss in the country's April employment report. The AUD/USD currency pair is up 0.2%.

    The Japanese yen has been the worst performing currency this year and is down more than 5% against the USD.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.

Cate Camerota
WRITTEN BY
Cate Camerota

Insights from SVB Industry Experts

 
SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Daily FX Update: Dollar stronger to begin week; US domestic policy in focus

 

Daily FX Update: US dollar to end week trading higher

 

Risk-on trading following FOMC meeting

 

Daily FX Update: Busy FX markets ahead of today's Fed meeting

 

Daily FX Update: US snaps three-day winning streak

 

Daily FX Update: US dollar trading at one-month highs