Dollar remains weaker following non-farm payroll disappointment

Dollar remains weaker following non-farm payroll disappointment

The dollar is broadly lower versus all peers as markets react to Friday’s payroll disappointment and as commodity prices continue to soar. Friday’s cyberattack on the largest US oil pipeline sent crude oil higher in anticipation of disruption in supply. The pound led G-10 currencies today soaring over 1.0% higher following the Scottish election outcome.

Economic data this week:

Tuesday: German ZEW

Wednesday: FR CPI, MBA Mortgage Applications, GE CPI, UK GDP, US CPI

Thursday: Initial Jobless claims

Friday: Univ. of Michigan Sentiment, US Retail Sales, Industrial Production

  • FX Rates
    May 10, 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 sits near a four-month low as the pound and commodity currencies outperform. Markets continue to digest Friday’s disappointing jobs report and equities open mixed. Data out this week includes CPI which is forecasted to show prices rising further in April. A line-up of Fed speakers will discuss recent price trends and how potential inflation could impact monetary policy and economic growth.

    GBP

    The pound led G-10 gainers rising 1.0% after the Scottish National Party failed to gain an outright majority which delays the risk of referendum on independence. This, paired with reopening optimism, sent the currency above 1.4100.

    EUR

    The common currency is relatively flat versus the dollar and lost ground to the stronger pound. ECB comments suggest that the bank is open to increase the asset purchase pace next quarter adding downward pressure to the common currency. Europe continued to reopen this weekend as the number of new cases falls and vaccinations increase.

    CAD

    The Canadian dollar strengthened for a fourth straight session as a cyberattack in the US on the Colonial Pipeline buoyed crude oil prices. Jobs data out Friday showed the country shedding 207.1K jobs last month, partially erasing gains from the two previous months.

    ASIA/PACIFIC

    USD/JPY is slightly higher in range-bound trading ahead of $1.8B of 108.00 strikes rolling off Tuesday.

    The Chinese yuan ended the session at a three-year high versus the dollar on Monday on broad dollar weakness and a stronger fix by the PBOC.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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