Dollar extends rally in wake of 10-year yields

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.


  • 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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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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