Daily FX Update: Dollar ahead of G-10 peers

Kathryn Garvey

December 22, 2020

Dollar ahead of G-10 peers

The dollar performed better than G-10 peers as Brexit negotiations continue to put pressure on the pound, and additional Covid restrictions impact both the EU and UK economies. The US passed a $900B stimulus plan in both the house and the senate and President Trump is expected to sign it into law today.

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FX Rates
December 22, 2020

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.

EUR/USD 1.2221
GBP/USD 1.3376
USD/CAD 1.2904
AUD/USD 0.7533
USD/JPY 103.52
USD/CNH 6.5397
USD/ILS 3.2372
USD/MXN 20.0409
USD/CHF 0.8867
USD/INR 73.84
USD
The dollar holds Monday’s gains and is mostly higher versus G-10 peers amid concern over a new strain of Covid and additional travel restrictions. The US House and Senate passed a $900B stimulus deal which is expected to be signed into law by the executive branch today. President Trump also signed legislation to fund federal agencies through December 28 – avoiding a partial shutdown.
GBP
The pound fell further after the UK’s latest concessions on fishing rights were rejected by the EU. UK GDP figures out this morning show that the economy grew by a record 16% in Q3, revised from the previous 15.5%.
EUR
The euro is little changed versus the dollar. The European Commission approved Pfizer’s Covid vaccine yesterday and is expected to begin vaccinations in Germany, Austria and Italy as early as Sunday.
CAD
The Canadian dollar edged lower versus the USD weighed down by lower oil prices and growing concerns on Covid’s impact on commodity demands.
ASIA/PACIFIC
Asian markets declined with stocks dipping in Japan and South Korea. The Japanese yen is down slightly versus the dollar.

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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

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Kathryn Garvey

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