FX Traders see a stronger dollar post Jackson Hole symposium despite weaker economic data

FX Traders see a stronger dollar post Jackson Hole symposium despite weaker economic data

The FX markets are in a wait-and-see mode ahead of the Federal Reserve's virtual Jackson Hole symposium which starts tomorrow and culminates with a Jerome Powell speech on Friday. A third day of stronger oil prices could not help the Canadian dollar as most all currencies sold off relative to the US dollar – including other safe-haven currencies.

 “I have nothing to offer but blood, toil, tears and sweat.”

Winston Churchill
  • FX Rates
    August 25, 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 US dollar gained despite Durable Goods orders for July being interpreted as worse than expected. Investors are betting that weaker data will lead the Federal Reserve to hold off on tapering/rate hikes.

    GBP

    The British pound is weaker vs. the US dollar as financial markets await Fed Chairman Jerome Powell’s speech on Friday. Wages in the UK have been rising and investors anticipate the Bank of England will begin to sound more hawkish in upcoming speeches and meetings and in turn help support the pound.

    EUR

    The euro is poised to again rely on the 1.17 support level as the dollar marches higher. Despite economic data expected to show the eurozone economy outpacing the US in Q3, the euro remains under pressure.

    CAD

    A third day of higher oil prices could not stop the Canadian dollar from weakening. FX markets are favoring the US dollar over most all currencies – especially in front of Jerome Powell's speech this Friday.

    ASIA/PACIFIC

    The Chinese renminbi is flat this morning after gaining on the US dollar the past two days. The RMB is trading in a range between 6.45 and 6.5 with FX markets watching closely the two central banks. The renminbi may be under pressure if the Fed signals tapering/rate increases sooner than expected.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
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.

Peter Compton
WRITTEN BY
Peter Compton

Insights from SVB Industry Experts

 
SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Dollar takes back yesterday’s losses

 

Daily FX Update: Safe-haven yen and Swissie gain as dollar loses

 

Daily FX Update: Dollar sinks on weak inflation

 

Daily FX Update: Dollar gains ahead of tomorrow’s CPI data

 

Daily FX Update: Dollar slides to end week, equities stronger

 

Daily FX Update: ECB reduces pace of asset purchases, dollar softens