Dollar extends rally in wake of 10-year yields

Kathryn Garvey

March 8, 2021

Dollar extends rally in wake of 10-year yields

The dollar extends its rally today in the wake of the 10-year yields hitting 1.6% and is stronger versus all peers. Risk sentiment is mixed and the passage of the latest covid relief bill in the house is unable to lift equity futures. Investors anticipate major central bank decisions coming in the next two weeks. Today is International Women’s Day.

Tuesday: Eurozone GBP

Wednesday: Bank of Canada rate decision, US CPI, MBA Mortgage Applications

Thursday: US Jobless Claims

Friday: Univ. of Michigan Sentiment, CA Unemployment Rate

FX Rates
March 8, 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.

EUR/USD 1.1885
GBP/USD 1.3846
USD/CAD 1.2639
AUD/USD 0.7682
USD/JPY 108.71
USD/CNH 6.5380
USD/ILS 3.3375
USD/MXN 21.7721
USD/CHF 0.9330
USD/INR 73.25
USD/BRL 5.7180
USD/SGD 1.3468
USD/DKK 6.2570
USD/SEK 8.5535
USD/NOK 8.5182
USD
The dollar rose again to 3-month highs beating all G-10 peers. The Senate passed a $1.9T Covid relief bill on Saturday that is expected to be approved in the house on Tuesday. 10-year treasuries held above 1.6% this morning as investors bet that additional stimulus on an already recovering economy could overheat inflation.
GBP
The pound fell 0.3% and is approaching the 55-DMA. 40% of the UK adult population have now been vaccinated and more than a million people have now received two doses of the vaccine – schools across England will open today for the first time in two months as a first step in the road to recovery.
EUR
The euro lost 0.4% to the greenback after sell stops were triggered at 1.1890 on USD momentum. The eurozone continues to struggle to contain Covid and vaccinate its population. Germany has extended its current lockdown and Italy is considering tougher nationwide controls.
CAD
The loonie slipped versus the stronger dollar as treasury yields bring investors back to the US currency. Bank of Canada’s monetary policy decision is due out Wednesday. Oil prices climb after Saudi Aramco facilities were targeted by missiles and drones.
ASIA/PACIFIC
The dollar rose versus the yen as upward momentum builds speculative option offers are being placed near 109.00. The Chinese yuan sold off all gains from this year, weakening 0.5% in the wake of the US treasury rally.

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Kathryn Garvey

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