US dollar capitalizes on strong Personal Income and Personal Spending data

US dollar capitalizes on strong Personal Income and Personal Spending data

FX markets have the dollar mostly stronger this morning in choppy trading. US economic data was strong, but sentiment is taking a hit as Amazon missed Q2 earnings estimates sending shares down 6%. The price of oil is flat and hanging on to recent gains. The Bank of England meets next week and is expected to signal potential monetary policy changes for later this year.

“The ones who are crazy enough to think that they can change the world are the ones who do.”

Steve Jobs
  • FX Rates
    July 30, 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

    Despite being up on the day, the dollar has given back all its gains from earlier in the month and is off 1% since last week. The month-over-month June reading of the PCE Deflator came in at 0.5% growth which was about where forecasts where and unchanged from last month. Personal Income and Personal Spending were both higher than expected. 

    Univ. of Michigan Consumer Sentiment for July due later this morning.
    GBP

    The pound held its recent gains as focus shifts to next week’s Bank of England meeting. FX market watchers anticipate the BoE to raise rates before the Federal Reserve does thereby providing some benefit to the pound.

    EUR

    Economic sentiment in the eurozone hit an all-time high in July, with optimism growing mainly in the industrial and service sectors. EUR/USD has continued its upward trend to trade 1% higher on the week.

    CAD

    The Canadian dollar hung onto yesterday’s gains and is now trading well below the 1.25 handle. The loonie is stronger despite GDP figures for May coming in at -0.3% which was in-line with expectations. Prior month data was revised downward to -0.5%.

    ASIA/PACIFIC

    The Japanese yen is weaker as are equities in Japan with the Nikkei 225 losing 1.8%, as officials announced plans to expand a state of emergency to areas around Tokyo, as well extending to the end of August.

    The Chinese renminbi hung onto gains made over the past two days.  The renminbi started the week much weaker on news the Chinese authorities will force companies in the education sector to effectively become non-profits.

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