Dollar extends two-day gains, Biden confirmed

The dollar is stronger versus G-10 counterparts with the UK pound being the most resilient. Violence at the Capitol yesterday delayed the confirmation of Joe Biden as the next president of the United States. Equities, treasury yields, oil and the US dollar all rose while gold slipped. Georgia’s senate race projected wins for democrats in both seats and investors flocked to riskier assets, keeping treasury yields above 1%.

“It is always wise to look ahead, but difficult to look further than you can see.”

Winston Churchill

FX Rates
January 7, 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 1.2266
GBP/USD 1.3576
USD/CAD 1.2726
AUD/USD 0.7733
USD/JPY 103.79
USD/CNH 6.4647
USD/ILS 3.1805
USD/MXN 19.9065
USD/CHF 0.8840
USD/INR 73.31
USD
The dollar is up 0.4% amid broad gains, snapping a two-day losing streak and bouncing off its lowest level since February 2018. Early this morning, and following an act of violence by Trump’s most violent supporters, Joe Biden was formally confirmed as the next President of the United States. Both Georgia Senator seats went blue, giving a 50:50 split in the senate with Vice President-elect Kamala Harris as the deciding vote. Jobless claims came in at 787K vs 815K expected. Additional data today includes November trade balance and December ISM PMI.
GBP
Pound was the most resilient versus the stronger dollar and is little changed with Monday’s high above 1.37 as near-term resistance.
EUR
The euro reversed a gain above 1.2344 and is now down 0.4% versus the greenback. Gains were capped by a 1.2350 barrier and higher treasury yields.
CAD
The loonie gave up ground to the US dollar, falling for a second day pressured by profit-taking and hopes of an orderly transition between Trump and Biden bolstering the US currency.
ASIA/PACIFIC
The Japanese yen loses ground for a second day to the dollar amid Japanese investor and importer demand.

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.

Daily FX Update