The US dollar is weaker this morning versus a basket of currencies and is now below levels prior to last week's Fed meeting. This week investors and traders will be looking at Wednesday’s Consumer Price Index numbers for October. The British pound continues to gyrate after last week’s surprise announcement by the Bank of England to keep rates on hold.
Weekly Economic data
Tuesday: Producer Price Index for October
Wednesday: Consumer Price Index for October, Initial Jobless Claims
Thursday: Veterans Day – no data release
Friday: JOLTS Job Openings for September, Univ. of Michigan Consumer Sentiment for November
November 8, 2021
EUR/USD 1.1575 GBP/USD 1.3553 USD/CAD 1.2461 AUD/USD 0.7419 USD/JPY 113.12 USD/CNH 6.3925 USD/ILS 3.1096 USD/MXN 20.3461 USD/CHF 0.9148 USD/INR 74.0237 USD/BRL 5.5486 USD/SGD 1.3473 USD/DKK 6.4263 USD/SEK 8.5893 USD/NOK 8.5320
The dollar is weaker today as investors continue to digest last week’s Fed announcement to begin tapering. This week’s focus will be on Wednesday’s CPI data release. Investors are still unsure how higher inflation will play out and if the Fed can stick to a more relaxed tapering and rate raising expectations.GBP
The pound is stronger this morning after selling off at the end of last week. Investors and FX traders are still digesting last Thursday’s surprise move by the Bank of England to keep rates unchanged when many expected a rate cut. GBP/USD dropped as much as 1.5% over the last few trading sessions and is rebounding some today.EUR
The euro begins the week flat vs. the US dollar. In a recent interview with a Spanish newspaper, European Central Bank’s Lane has called the current period of inflation “very unusual and temporary,” stating that there are no signs that it is a “chronic” situation. European gas prices surged on signs Russia won’t deliver the boost in supplies Vladimir Putin promised.CAD
The Canadian dollar is slightly stronger versus the US dollar in morning trading. The price of oil continues to rebound higher after last week’s sell-off which took oil prices down to $78/bbl. Brent rose this morning to $83/bbl as traders weighed the odds of the US releasing strategic reserves.ASIA/PACIFIC
AUD/USD continues to move above the 0.74 level due to the USD weakening in response to last week’s US labor market report. Australian unemployment levels are expected to show improvement as COVID lockdowns restrictions are eased.
INR strengthened last week to close at 74.03 due to positive domestic equities and a dovish outlook by the US Federal Reserve. This was the highest close since September 27.
CNH/USD rates show little change, with CNH raising slightly to 6.38979.
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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