Private payrolls data show strong hiring in the US lifting dollar

Private payrolls data show strong hiring in the US lifting dollar

The dollar rose overnight on Delta variant concerns and continued higher after ADP payrolls data came in stronger than expected. The UK pound continued to weaken as Covid case counts continue to rise.  The Aussie dollar is down again on concerns low vaccination rates are the cause of Delta variant case surges.  The Canadian dollar strengthens slightly on better than expected GDP data.

“The price of inaction is far greater than the cost of making a mistake”
Meister Eckhart
  • FX Rates
    June 30, 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

    Dollar strength continued for a third day on concerns about the rising cases of Covid from the Delta variant.  Also, stronger than expected ADP private payroll data.  And finally, speculation that regardless of job gains, interest rates in the US will be heading higher than the Fed currently forecasts.

    GBP

    Sterling has lost 0.4% against the Dollar since yesterday’s London open as daily Covid cases continue to climb.

    Recent reports show British households saved 20% of their disposable income in the first quarter of the year as opportunities to spend were limited amid lockdown. The economy shrank 1.6% in the period, slightly worse than the 1.5% forecast.

    EUR

    The euro lost on overall dollar strength.  Euro Area economic confidence climbed to the highest level in 21 years this month, as shops, restaurants and services reopened. Confidence for the month rose in five of six of the bloc’s largest countries, only declining in Spain.

    CAD

    The Canadian dollar is stronger after April GDP data showed a smaller contraction than had been expected.  Prior month was also revised favorably. 

    The American Petroleum Institute (API) announced oil stockpiles fell more than expected during is normal weekly data release.  That and news the nuclear talks with Iran have stopped sent the price of oil higher.

    ASIA/PACIFIC

    The Australian dollar continues to weaken as news about lockdowns and more Covid cases saps optimism.  The currency has fallen 3% vs. the US dollar and is once again struggling to maintain the 0.75 handle.

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Peter Compton
WRITTEN BY
Peter Compton

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