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
May 10, 2021
EUR/USD 1.2157 GBP/USD 1.4115 USD/CAD 1.2120 AUD/USD 0.7869 USD/JPY 108.83 USD/CNH 6.4170 USD/ILS 3.2515 USD/MXN 19.9352 USD/CHF 0.9001 USD/INR 73.3463 USD/BRL 5.2271 USD/SGD 1.3247 USD/DKK 6.1149 USD/SEK 8.3287 USD/NOK 8.2428
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.
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
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