Dollar is modestly lower versus many G-10 peers before a packed US data calendar Wednesday and Thursday. Equity markets bounced back this morning on optimism on talks between President Biden and Senator Joe Manchin which indicate that the door is not fully closed on Biden’s $2T agenda. Commodity prices are rising as health officials indicate vaccinations can tame Omicron infections.
“The great thing in this world is not so much where you stand, as in what direction you are moving.” Oliver Wendell Holmes
December 21, 2021
EUR/USD 1.1276 GBP/USD 1.3255 USD/CAD 1.2924 AUD/USD 0.7133 USD/JPY 113.87 USD/CNH 6.3810 USD/ILS 3.1615 USD/MXN 20.7600 USD/CHF 0.9233 USD/INR 75.6065 USD/BRL 5.7500 USD/SGD 1.3648 USD/DKK 6.5952 USD/SEK 9.1530 USD/NOK 8.9755
President Biden will address the nation this afternoon and is expected to re-iterate the importance of being vaccinated, as cases tied to the Omicron variant continue to rise in the US.GBP
The pound hopped 40 points higher versus the dollar on higher gilt yields and following the UK’s support to businesses impacted by Covid.EUR
The euro tracked slightly higher versus the dollar following higher Euro bond yields. The ECB is taking a patient approach to policy tightening and holding rates steady till 2023.CAD
The Canadian dollar climbed alongside higher oil prices to strengthen versus the dollar.ASIA/PACIFIC
USDJPY rose slightly but still sits below the 114 handle and last week’s highs following the recent hawkish FOMC announcement.
Kiwi and Aussie both outperformed versus the dollar amid improved risk sentiment.
This article is intended for U.S. audiences only.
©2022 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, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.