Dollar gives back ground as risk-sentiment improves

After falling yesterday, tech shares bounced back this morning sending the dollar lower as risk-tone improved. Today, the House is set to begin debate on the latest stimulus bill which is expected to be signed into law this weekend. The dollar is lower versus G-10 peers with commodity currencies performing the best.

“My barn having burned down, I can now see the moon."
Mizuta Masahide (17th century Japanese poet and samurai)
  • FX Rates
    March 9, 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 gave back ground against all G-10 currencies as US equity futures climb and bond yields fall. Treasury yields pulled back this morning as equities are positioned to recoup Monday’s losses. The House prepares to pass a $1.9T relief bill this week and President Biden is expected to sign the legislation prior to expiration of federal unemployment programs on Sunday.

    GBP

    The pound is up slightly versus the dollar firmly above 55-DMA support. The UK currency stumbled against peers after yesterday’s UK goods exports decreased in 2020 furthering concerns about the scale of damage Covid inflicted on the economy.

    EUR

    The euro is stronger versus the dollar on greenback weakness despite eurozone GDP estimates for Q4 2020 showing a contraction of 0.7% - worse than 0.6% predicted.

    CAD

    The Canadian dollar climbed versus a weaker greenback buoyed by risk-on appetite, and a rebound in oil prices. Investors expect the BoC to leave interest rates unchanged tomorrow.

    ASIA/PACIFIC

    USD/JPY touched above 109 and then quickly reversed course amid profit taking and option barriers. The yuan rebounded after Chinese state funds intervened in the equities market to alleviate declines.

Contact Us

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.

Kathryn Garvey
WRITTEN BY
Kathryn Garvey

Insights from SVB Industry Experts

 
SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Daily FX Update: Stocks firm, dollar lower ahead of bank earnings reports

 

Daily FX Update: CPI exceeds expectations, stocks and dollar mixed

 

Daily FX Update: Stocks & dollar lower ahead of inflation and retail sales data

 

Daily FX Update: Treasuries, Dollar tick higher to end week

 

FX Daily Update: Dollar lower, IMF panel in focus

 

Daily FX Update: Dollar up on economic growth forecasts