Dollar gains as investors seek safe havens

Dollar gains as investors seek safe havens

Investors flocked to safe haven assets amid concerns about a new highly contagious coronavirus strain found in the UK. Additional serious lockdown and travel restrictions were implemented across Europe. The US government reached a $900B stimulus deal regarded as a “down payment” on further funding by President-elect Biden.

Monday: Eurozone consumer confidence, Chicago Fed Nat Activity Index

Tuesday: UK GDP, US GDP

Wednesday: US Initial jobless Claims, U of Michigan Sentiment, New Home Sales

Thursday: Japan Jobless Rate

  • FX Rates
    December 21, 2020

    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 won versus all G-10 peers, rallying 0.7% as Covid cases surge in Europe. US lawmakers have reached a deal on a $900B fiscal stimulus package. The package includes $600 payments to most adults, and 3 months of extended unemployment benefits.

    The pound fell 2% versus the dollar – the largest daily decline since March - after a soft Brexit deadline was missed yesterday and the UK’s biggest port stopped all traffic heading to the EU. A Government source has reported that it is unlikely a deal will be reached unless there is a “substantial shift” in stance from Brussels.

    European officials are set to discuss a coordinated response to the new strain of Covid-19 discovered in the UK. The euro sunk vs. the dollar as investors seek safe haven cover.
    The Canadian dollar fell along with equities and other G-10s on safe haven demand. PM Justin Trudeau suspended flights between the UK and Canada effective last night.

    Emerging market currencies declined as a rise in Covid-19 infections capped risk appetite.

    The Japanese yen held up versus the dollar, giving up net 0.2% after paring a 0.6% gain to 103.89.

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Kathryn Garvey
Kathryn Garvey

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