.png){kind=logo}
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, 2021Rates 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.
EUR/USD 1.1914 GBP/USD 1.3890 USD/CAD 1.2345 AUD/USD 0.7557 USD/JPY 110.82 USD/CNH 6.4645 USD/ILS 3.2630 USD/MXN 19.8350 USD/CHF 0.9197 USD/INR 74.1910 USD/BRL 4.9375 USD/SGD 1.3438 USD/DKK 6.2415 USD/SEK 8.4855 USD/NOK 8.5360
-
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.
GBPThe 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.
EURThe 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.
CADThe 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/PACIFICThe 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.
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
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.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
| Source: Bloomberg | |
This article is intended for U.S. audiences only. ©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. |
