Daily FX Update: Dollar remains firm amid stimulus hopes

Kathryn Garvey

February 3, 2021

Dollar remains firm amid stimulus hopes

The dollar remains firm today on optimism that the Senate will be able to pass Biden’s relief bill without having to garner Republican support. The eurozone continues to struggle to get their population vaccinated while trading is focused on positioning ahead of tomorrow’s ECB meeting.

“Everything comes at a cost. Just what are you willing to pay for it?”

Serena Williams

FX Rates
February 3, 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.

EUR/USD 1.2024
GBP/USD 1.3646
USD/CAD 1.2806
AUD/USD 0.7615
USD/JPY 105.04
USD/CNH 6.4611
USD/ILS 3.3035
USD/MXN 20.1391
USD/CHF 0.8987
USD/INR 72.9613
USD
The dollar is higher a third day holding above the 55D-DMA on upbeat sentiment surrounding stimulus negotiations. The Senate passed a resolution to debate on budget for the 2021 fiscal year, paving the way for Pres. Biden’s stimulus package to pass without republican support.
GBP
The pound edged lower versus the dollar ahead of tomorrow’s Bank of England meeting. Investor focus has turned to tomorrow’s meeting where the BoE will publish the findings on what negative interest rates could mean for the country.
EUR
The euro continues to lag on vaccine distribution concerns and as inflation rises to the highest level in five years. Following a breakdown in talks in Italy, former ECB president, Mario Draghi was asked to form a national unity government and will serve as Prime Minister.
CAD
The Canadian dollar fell versus the greenback despite one-year highs in oil prices and improved risk sentiment.
ASIA/PACIFIC
The yen trades rangebound versus the dollar as the pair awaits passage of the stimulus package before breaking out of its current tight trading range.

The yuan weakened against the dollar as banks bought the US currency to offset corporate dollar selling ahead of the Lunar New Year which begins Feb. 11^th.

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 fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Kathryn Garvey

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