Dollar mixed versus peers ahead of key data this week
The dollar was lower versus peers ahead of ADP employment data this morning and then ticked higher following data showing 742K jobs were added in April – the strongest reading since September 2020. Markets look towards tomorrow’s Bank of England meeting and Friday’s employment data out of the US and Canada.
May 5, 2021
EUR/USD 1.2005 GBP/USD 1.3902 USD/CAD 1.2268 AUD/USD 0.7739 USD/JPY 109.23 USD/CNH 6.4855 USD/ILS 3.2673 USD/MXN 20.1943 USD/CHF 0.9131 USD/INR 73.91 USD/BRL 5.3903 USD/SGD 1.3355 USD/DKK 6.1946 USD/SEK 8.4930 USD/NOK 8.3416
The dollar is mixed versus peers this morning as commodity currencies outperform and soft data out of the eurozone send the euro lower. Yellen walked back comments yesterday where she indicated interest rates would need to rise at some point. ADP employment change came in at +742K, below expectations but continuing an upward acceleration. Investors will continue to watch for Friday’s employment numbers as an indicator of the health of the US economy.GBP
The pound ticked higher versus the greenback ahead of tomorrow’s Bank of England Monetary policy statement tomorrow. The BoE is expected to leave the rate untouched and investors will listen for how and when the bank will reduce QE measures ramped up in 2020.EUR
The euro dipped versus the dollar and found support just below 1.20 as soft market services PMI for April weighed on the currency.CAD
The Canadian dollar strengthened along with other commodity currencies helped by a rally in oil prices and other input commodities.ASIA/PACIFIC
The Japanese yen gained a little strength after trading in a tight range. Tokyo returns from holiday on Thursday which may increase volatility.
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
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.
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.