After losing 5 days in a row the dollar is stronger on light summer trading volume

After losing 5 days in a row the dollar is stronger on light summer trading volume

FX markets are quiet to start the week as market participants begin summer vacations.  The US Non-farm Payroll numbers (forecast +700K) is due out this Friday and many investors are already positioning ahead of the release.  A risk-off mood helped the safe-haven dollar as variants of Covid-19 persist in many geographies around the world.

Economic Data for the Week:

Tuesday:  S&P CoreLogic House price data for April; Conference Board Consumer Confidence for June.

Wednesday: ADP Payrolls data for June; Pending home sales for May.

Thursday: Opec+ meeting; Weekly Jobless Claims; ISM and Markit Manufacturing PMI for June.

Friday: Non-farm Payrolls for June (forecast +700K)

  • FX Rates
    June 28, 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 turned higher in light trading as financial markets favored safe-haven investments.  Friday’s Non-farm Payroll upcoming release is already causing traders to hold back on new position-taking.  Also, quarter-end window dressing and capital flows are pushing market prices and favoring the dollar.

    GBP

    The pound has begun to recover following a two-day downward trend following Thursday’s dovish Bank of England meeting and a rapid increase in Covid-19 cases. Cable is trading 0.4% higher on the morning as investor confidence is regained in the appointment of Sajid Javid as Health Secretary.

    EUR

    The euro is weaker in the face of broad US dollar strength.  A member of the European Central Bank made the comment that there is no room to raise interest rates as long as inflation remains low. 

    Marine Le Pen’s far-right party failed to win a regional election in its stronghold, the Provence-Alpes-Cote d’Azur region of France. An alliance of rival parties that formed a “republican front” emerged victorious, with exit polls showing the party with 56.6% of the vote.

    CAD

    The Canadian dollar is weaker on overall US dollar strength.  GDP figures for Canada are due Wednesday, putting some FX traders in a wait-and-see mode.  OPEC+ meets on Thursday this week.

    ASIA/PACIFIC

    The Yen is slightly weaker despite the Bank of Japan expressing optimism over the speed of the economic recovery, led mainly by the vaccination rollout. USDJPY is just under 111 at time of writing.

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Peter Compton
WRITTEN BY
Peter Compton

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