The dollar begins the short week higher in the wake of disappointing jobs data and as Goldman Sachs group cuts its 2021 growth forecast citing lower consumer spending and the rise of the delta variant.
Weekly economic data:
Tuesday: RBA Rate decision, German Zew, Eurozone GDP
Wednesday: US Mortgage Applications, BoC Interest rate, JOLTS job openings
Thursday: ECB Rate decision
Friday: UK Industrial Production, US PPI
September 7, 2021
EUR/USD 1.1845 GBP/USD 1.3776 USD/CAD 1.2597 AUD/USD 0.7391 USD/JPY 110.16 USD/CNH 6.4606 USD/ILS 3.2028 USD/MXN 19.9309 USD/CHF 0.9162 USD/INR 73.4125 USD/BRL 5.1699 USD/SGD 1.3454 USD/DKK 6.2771 USD/SEK 8.8653 USD/NOK 8.6690
The dollar rises for a second day amid thin holiday trading and after Friday’s disappointing jobs data. Bond yields rise and commodity prices soften as reflation bets ease. Enhanced unemployment benefits expired yesterday. Pres. Biden is increasing pressure on Congress for any progress on the $4T infrastructure bill.GBP
The pound slid 0.5% lower following PM Johnson’s proposal for a 14B tax hike. Brexit continues to weigh on the currency as the UK prepares to extend Northern Ireland’s grace periods.EUREuro starts the week slightly lower. Data out of the eurozone saw GDP grow 2.2% in Q2. Overall GDP is 2.5% below pre-pandemic level for Q4 2019. German ZEW economic sentiment dropped from 40.4 to 26.5, well below expectations of 30.2. ECB rate decision is due out Thursday.CADFollowing a sell off in oil prices, the Canadian dollar is softer versus the greenback. Bank of Canada is not expected to change interest rates in tomorrow’s decision.ASIA/PACIFIC
The Australian dollar sold off following the RBA’s plan to continue with tapering purchases of government securities.
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
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