Dollar firm despite risk appetite

Despite a stronger risk-appetite, the US dollar firmed versus major counterparts as treasury yields edged higher and commodities gained. Reddit investors pumped silver over the weekend, and the commodity traded above $30 an ounce. Upbeat news of vaccine rollouts in the UK firmed the pound, while angst surrounding delays in rollout in the rest of Europe weighed on the common currency. Big reports for the week include US Jobs data out Friday, and BoE rate decision on Thursday.

Economic Data for the Week

Monday: Markit Fr Manufacturing, US ISM Manufacturing

Tuesday: FR CPI

Wednesday: MBA Mortgage Applications

Thursday: BoE Bank Rate, US Jobless Claims, Durable goods orders

Friday: US Nonfarm Payrolls, GE Factory Orders

  • FX Rates
    February 1, 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 is broadly higher, moving above its 55-day moving average versus all G-10 peers with the exception of the pound. President Biden is scheduled to meet with Republican senators who have proposed an alternative and smaller stimulus package. Over the weekend, Biden also reversed $27.4B in spending cuts implemented by the previous administration.

    GBP

    The pound is higher versus G-10 peers following upbeat vaccine deployment news that a vaccine has been offered to every care home resident. Focus this week will be shifted to the BoE meeting on Thursday. Up for discussion is negative rates as a feasible option to boost the economy. Expectations are largely to keep rates unchanged at 0.1%.

    EUR

    The euro lagged nearly a half a percent behind the dollar after short-term trading stops were triggered below 1.2120. Angst over the slow vaccine rollout and a drop in German retail sales also weighed on the currency.

    CAD

    The Canadian dollar is weaker versus the US dollar but held up better versus other G-10 counterparts as a rise in commodity prices rose on retail frenzy trading.

    ASIA/PACIFIC

    The onshore yuan weakened 0.51% against the dollar following trading at its strongest levels in 2 years last week. Manufacturing data suggested China’s economic recovery is slowing.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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