Dollar begins short week stronger amid weak risk tone

Dollar begins short week stronger amid weak risk tone

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



  • FX Rates
    September 7, 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 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.

    EUR
    Euro 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.
    CAD
    Following 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.  

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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