Dollar dips in quiet trading as risk mood improves

The dollar is lower for the first time in three days. Last night President Trump released a video calling the $900B stimulus bill that has been passed by the House and the Senate “a disgrace” and demanded changes that include $2,000 direct payments to Americans. The bill passed with veto-proof majorities in the House and the Senate, and the President has until Dec. 28 to sign the bill to avoid a shutdown. The pound and the euro both posted gains versus the dollar, but are capped by Brexit negotiations and the rapid spread of a new coronavirus strain. US will release data today ahead of the Christmas Holiday.

"I'll be hanging around the mistletoe, hoping to be kissed."

Mia, Love Actually

FX Rates
December 23, 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 1.2213
GBP/USD 1.3522
USD/CAD 1.2858
AUD/USD 0.7585
USD/JPY 103.43
USD/CNH 6.5286
USD/ILS 3.2153
USD/MXN 20.0542
USD/CHF 0.8885
USD/INR 73.76
USD
The dollar broke a 3-day winning streak and is lower against all G-10 peers in thin trading ahead of the holiday. Investors looked past the president’s comments on the covid stimulus deal and equities look positive at the open. Economic data out this morning includes November personal income and spending, November durable goods orders and weekly initial jobless claims. Personal income posted a 1.1% decline versus -0.3% expected, and spending fell 0.4% after rising 0.5% in October. Durable Goods orders came in at 0.9% versus 0.55% surveyed and jobless claims came in at 803K versus 880K expected.
GBP
The pound recovered slightly today after falling over 1.7% in the last three sessions as the EU and UK continue to try to strike a deal over fishing rights. Officials have suggested that talks may continue between Christmas and the official Brexit deadline of Dec. 31 and Michel Barnier has expressed willingness to continue talks into the new year if necessary. UK and French ports have reopened for citizens to return home and for haulers to transport goods provided a negative test is shown.
EUR
The euro is little changed from yesterday’s close. EU officials have confirmed that the new strain discovered in the UK has been detected throughout Europe. Almost all 27 member states have restricted travel to the UK to limit further spread.
CAD
The Canadian dollar advanced along with global equities heading for the first session gain in four. The loonie held onto gains after GDP data released showing 0.4% growth in October – in line with estimates.
ASIA/PACIFIC
The Japanese yen is up very slightly versus the greenback and is holding in a tight range. The Chinese yuan leads EM Asian currencies against the softer dollar.
The Aussie and Kiwi rebound and lead G-10 gainers against the dollar.

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Source: Bloomberg

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WRITTEN BY

Kathryn Garvey

Dollar dips in quiet trading as risk mood improves