.png){kind=logo}
Strong US economic data could not save dollar as selling pressure picks up speed vs CAD, GBP and EUR
Despite caution this morning in equity and bond markets, the US dollar remains under pressure as does fellow safe haven currencies – the Swiss franc and Japanese yen. The US 10-yr Treasury yield again set a one-year high of 1.45% up from 1.08% to start the month. The higher yield is bringing in global investors who believe the increase is not a prelude to higher inflation. By comparison, the euro denominated German 10-yr bond has a negative yield and the British bond yields 0.81%.
“Courage is grace under pressure.”
-
FX Rates
February 25, 2021Rates 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 1.2220 GBP/USD 1.4161 USD/CAD 1.2482 AUD/USD 0.7976 USD/JPY 106.12 USD/CNH 6.4566 USD/ILS 3.2767 USD/MXN 20.6550 USD/CHF 0.9053 USD/INR 72.4250 USD/BRL 5.4452 USD/SGD 1.3192 USD/DKK 6.0836 USD/SEK 8.2424 USD/NOK 8.3722
-
USD
Strong Durable Goods for January as well as better than expected weekly initial jobless claims could not rescue the declining dollar especially vs. the euro, pound and Canadian dollar. Financial markets will continue to watch stimulus talks in Congress and gauge the impact on the 10-yr Treasury bond.
GBPThe British pound heads toward a 6th consecutive day of gains vs. the US dollar on optimism the UK will successfully vaccinate enough citizens to stick to a June date to remove all lockdown restrictions and fully reopen the economy.
EURMixed economic data from the eurozone could not stop the common currency from gaining vs. the US dollar. FX market watchers’ site technical trading levels around 1.218, suggesting once the level is given the euro will rise to 1.2348.
CADThe Canadian dollar hit its strongest level vs. USD in over 3 years on the strength of gains in oil prices. An OPEC meeting next week will be watched carefully regarding possible changes in oil production, especially from Russia and Saudi Arabia, with any announcement of a large increase in production likely to sink the price of oil.
ASIA/PACIFICThe Australian dollar hit a 3-year high vs. the US dollar as the commodity-linked rally continues.
The Japanese yen was weaker again today as the 10-yr US Treasury bond yield hit 1-year highs, attracting investment from Asian investors who buy dollars to buy the Treasuries.
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
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 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.
| Source: Bloomberg | |
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. |
