Dollar eases slightly ahead of Thursday's inflation report
Markets are quiet in cautious trading ahead of two key events tomorrow: US Inflation and ECB policy decision. Markets will watch to see if inflation is higher than forecast providing impetus for the Fed to begin cutting asset purchases. The ECB meeting is expected to keep rates the same.
June 9, 2021
EUR/USD 1.22 GBP/USD 1.4140 USD/CAD 1.2077 AUD/USD 0.7750 USD/JPY 109.35 USD/CNH 6.3861 USD/ILS 3.2414 USD/MXN 19.6431 USD/CHF 0.8944 USD/INR 72.9775 USD/BRL 5.0396 USD/SGD 1.3232 USD/DKK 6.0954 USD/SEK 8.2474 USD/NOK 8.2481
Dollar eased slightly today versus all G-10 peers ahead of tomorrow’s inflation data where expectations indicate that price pressures will remain high through the summer. Wall Street remains lethargic and also awaits tomorrow’s inflation report.GBPThe pound edged higher today shaking off post-Brexit trade issues as officials meet today in London over trade agreements. BoE governor Andy Haldene commented that the UK economy is going “gangbusters”.EUR
The euro rose slightly with gains capped by a drop in bond yields ahead of tomorrow’s ECB meeting. The US and EU are expected to agree to end existing trade battles and taxes levied by the Trump Administration in next week’s meeting between President Biden and EU leaders.CAD
The Canadian dollar outperformed versus the USD before a rate decision out later today and ahead of US data tomorrow. BoC is expected to hold rates steady.ASIA/PACIFIC
USD/JPY is slightly lower and range-bound ahead of key data out tomorrow.
In China, factory-gate inflation in May rose 9% compared to a year earlier and to the highest level since 2008.
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
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.
This article is intended for U.S. audiences only.
©2021 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 and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.