.png){kind=logo}
The dollar is broadly lower, continuing a downtrend that began mid-month and accelerated after last Friday’s dovish speech by Fed Chair Powell. US stocks opened lower following European stocks which were hit hard by unexpected “tapering” comments by a governing member of the European Central Bank. US Treasury 10Yr yields are steady around 1.29%. Oil and gold prices are effectively unchanged near $68.70 per barrel and $1,813 per oz, respectively. Traders look forward to Friday’s US jobs data.
“Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.”
-
FX Rates
August 31, 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 1.1827 GBP/USD 1.3789 USD/CAD 1.2610 AUD/USD 0.7317 USD/JPY 109.75 USD/CNH 6.4595 USD/ILS 3.2080 USD/MXN 20.1155 USD/CHF 0.9122 USD/INR 73.0063 USD/BRL 5.1457 USD/SGD 1.3436 USD/DKK 6.2887 USD/SEK 8.6070 USD/NOK 8.6829
-
USD
The dollar is lower across the board, continuing the recent downtrend which accelerated after Fed Chair Powell’s dovish comments on tapering and rate hikes last Friday at the Jackson Hole symposium. Traders are now focused on this Friday’s US jobs data, which may help determine the timing of Fed tapering.
GBPFollowing yesterday’s summer bank holiday in the UK, the GBP has changed little versus the USD compared to its peer currencies. UK equities are slightly lower following today’s unexpectedly weak, albeit minor, economic data releases – New Consumer Credit and Mortgage Approval for July.
EURThe euro is higher on the day, trading over $1.18 and reaching its highest level since mid-August. ECB bond yields also rose following hawkish comments on tapering by a governing member of the ECB. Robert Holzmann said the ECB should begin a conversation about how/when it will taper its emergency bond purchase program. This morning’s release of Eurozone CPI surprised on the upside – Core CPI YoY of +1.6% was slightly above 1.5% consensus, and well above July’s +0.7%; CPI MoM of +0.4% was higher than 0.2% consensus and July’s -0.1.
CADThe CAD weakened following unexpected news that Canada’s economy contracted in Q2. Quarterly GDP annualized came in at -1.1%, much worse than consensus of +2.5% and Q1’s +5.6%. Analysts predict increasingly difficult times ahead as Delta variant cases soar. Traders look forward to the Bank of Canada meeting next week, when tapering of asset purchases may be discussed.
ASIA/PACIFICThe risk-on mood in financial markets fueled a surge in the AUD and NZD overnight, both outperformed most of their peer currencies. Traders look forward to Australia’s GDP Q2, trade balance and PMI data all to be released this week.
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. ©2022 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, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. |
