Renminbi, loonie lead and safe havens sell off as developed economies gain strength

Renminbi, loonie lead and safe havens sell off as developed economies gain strength

Better than expected economic data in the US supported the dollar against fellow safe havens, the Swiss franc, and euro. The Chinese renminbi strengthened again to another three-year record. Month end positioning may cause some volatility coming into the Memorial Day weekend. The Canadian dollar is heading toward 1.20 to the dollar – not seen since 2015.

“Success is the sum of small efforts, repeated day-in and day-out.”

Robert Collier
  • FX Rates
    May 27, 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

    Headline Durable Goods orders for April came in (-1.3%) worse than expected (+0.8%), but the Capital Goods orders which excludes defense and aircraft came in at +2.3% vs. the +1.0% expected. Initial Jobless Claims and Continuing Jobless Claims for last week also came in better than expected.  Core PCE was +2.5% for Q1 which was higher than the 2.3% expected.


    The pound is stronger today after a member of the Monetary Policy Committee of the Bank of England, Gertjan Vlieghe, suggested interest rates may need an increase early next year if the labor market recovers smoothly. 


    The euro weakened as FX market speculators see less likelihood of a change in policy by the European Central Bank when it meets June 10th.

    Switzerland confirmed they will not sign the EU framework agreement, citing substantial differences. The framework unveiled in 2018, is the basis for Switzerland’s continued access to the single market. Without an agreement, Switzerland will be reduced to “third country” status, putting the 250 billion CHF goods-trading relationship at significant risk.


    The Canadian dollar strengthened and is headed to the 1.20 level last seen in 2015. The price of oil gained on stronger than expected US economic data.


    The renminbi strengthened yet again as the Biden administration held their first trade talks with China since taking office in January. Talks were said to be constructive and pragmatic.

    The Japanese yen lost ground as safe havens sold off and US Treasury yields climbed. The markets sold Treasuries after Fed officials calmed fears about inflation.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at
See all of SVB's latest FX information and commentary at

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 You can withdraw your consent at any time.

Peter Compton
Peter Compton

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Daily FX Update: Dollar gains on “triple-witching”


Dollar takes back yesterday’s losses


Daily FX Update: Safe-haven yen and Swissie gain as dollar loses


Daily FX Update: Dollar sinks on weak inflation


Daily FX Update: Dollar gains ahead of tomorrow’s CPI data


Daily FX Update: Dollar slides to end week, equities stronger