Dollar lower, IMF panel in focus

The dollar eased again versus major peers today as FOMC minutes reiterated the Fed’s dovish stance and fueled equity investor optimism. Minutes gave a brighter outlook to the economy, but also agreed to support near-zero interest rates in the short and midterm. Today, Jay Powell is set to contribute to a panel on the global economy at the IMF meeting. Markets will listen closely at the 12pm panel for thoughts on global recovery and monetary policy outlook.

“Let us put our minds together and see what life we can make for our children.”
Sitting Bull, Hunkpapa Lakota leader
  • FX Rates
    April 8, 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 eased again today as treasury yields slide and US initial jobless claims showed an increase to 744K – higher than expected. Fed minutes yesterday reiterated dovish stance agreeing accommodative monetary policy will remain in place until further progress regarding employment and inflation is reached. Jay Powell is due on an IMF panel discussion mid-day.  

    GBP

    The pound steadied versus the dollar after Q1 profit taking by market participants sent the pound lower yesterday. The pound’s strength year-to-date has been credited to expectations of an economic rebound and a rapid vaccine rollout program. Investors await economic data and evidence of a sustained vaccine rollout to see if pound can hold onto Q1 gains.

    EUR
    The euro rose again versus the dollar but gains were capped by EUR2.9B in option expiry. Nearby resistance is the 200DMA of 1.1894.
    CAD

    The Canadian dollar edged higher versus the greenback along with stock futures after US jobless claims disappointed. Canada’s employment data for March is due out tomorrow.

    ASIA/PACIFIC

    The Japanese yen also firmed versus the dollar as yen shorts cover positions and FX speculators “buying-on-the-dip” effectively slowed the decline.

    The Chinese yuan lost ground versus the dollar as the PBOC vowed to increase currency flexibility.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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