Dollar higher for a second day
The dollar is higher for a second day breaking above the 91.00 handle and mixed versus G-10 peers. The UK pound and Canadian dollar outperformed the USD while the euro slid to two-month lows. Equity markets remain risk-on, and the US has passed a vaccination milestone where more people have received a dose than total number of infections in the US.
February 2, 2021
EUR/USD 1.2029 GBP/USD 1.3623 USD/CAD 1.2854 AUD/USD 0.7582 USD/JPY 105.12 USD/CNH 6.46 USD/ILS 3.2993 USD/MXN 20.24 USD/CHF 0.8990 USD/INR 72.97
The dollar is higher for a second day and stronger versus other haven currencies amid higher Treasury yields and US equity futures. Yesterday’s meeting between the White House and Republican senators was reportedly productive. Investors will closely watch negotiations surrounding the proposed stimulus plan.GBPSterling holds marginal gains versus the dollar on optimism of door to door testing and rapid vaccine deployment and anticipation of the BoE ruling out negative rates later this week.EUR
Euro extends its slide today amid concerns on slow vaccine distribution and has broken below a key support dropping to two-month lows.CAD
The Canadian dollar outperformed the US dollar following a breakout in oil prices and improved risk sentiment. Investors await unemployment data due out on Friday.ASIA/PACIFIC
The dollar is stronger versus haven currencies including the Japanese yen breaching the 105.00 threshold.
The Australian dollar is the worst performer as RBA kept its cash rate unchanged at 0.1% and announced an additional purchasing program of 100B bonds after the current program completes in April.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory