.png){kind=logo}
Concern for slowed growth supports haven currencies
Data out of the US and China caused concerns of slowing growth which supported haven currencies. Later this week, the Federal Reserve will host a symposium at Jackson Hole. Commentary from Federal Reserve Chairman Powell regarding his views around strong employment data and any change to his previous standpoint that “substantial further progress” is still needed ahead of any bond tapering will be watched closely.
Economic Data for this week:
Tuesday: US Retail Sales, UK Jobless Claims, Eurozone GDP
Wednesday: Australian Unemployment, UK CPI
Thursday: US Initial Jobless Claims
-
FX Rates
August 16, 2021Rates 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.
EUR/USD 1.1782 GBP/USD 1.3858 USD/CAD 1.2561 AUD/USD 0.7330 USD/JPY 109.1300 USD/CNH 6.4769 USD/ILS 3.2182 USD/MXN 19.8553 USD/CHF 0.9120 USD/INR 74.2475 USD/BRL 5.2558 USD/SGD 1.3555 USD/DKK 6.3121 USD/SEK 8.6550 USD/NOK 8.8358
-
USDData out of the US released on Friday showed a drop in consumer confidence. This resulted in a shift for global risk appetite as investors remain concerned about a growth slowdown. Safe haven currencies including the US dollar strengthened on the news.GBPThe British pound remains largely unchanged versus the greenback as risk appetite for global markets wanes following data out of the US and China. A busy week of UK data is expected to impact sterling; focus will be on labor market report Tuesday, inflation data Wednesday and retail sales Friday.EUROne-month implied volatility for EUR/USD is at its lowest level since February 2020. This is signaling that traders are betting that volatility for the currency pair will stay low despite upcoming meeting for the Fed and the European Central Bank in September.CAD
The Canadian dollar weakened versus the US dollar amidst lower commodity prices including oil. USD/CAD is trading about 0.3% higher, the largest gain in more than a week. WTI crude is down 1.75%.
ASIA/PACIFICThe Japanese yen, along with other haven currencies, advanced as investors are concerned about slowed growth and ahead of the Federal Reserve’s symposium in Jackson Hole later this month.
For more analysis on FX markets or information regarding SVB's FX services:
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.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
| Source: Bloomberg | |
This article is intended for U.S. audiences only. ©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. |
