Strong earnings and a boost in equities bolster risk sentiment keeping the dollar soft to begin the week. Markets will keep an eye on employment data due out this week starting with ADP private sector jobs on Wednesday, and the full employment report due Friday.
Monday: Markit Fr Manufacturing, ISM Manufacturing
Tuesday: US Durable Goods
Wednesday: MBA Mortgage Applications
Thursday: Bank of England Bank Rate, US Initial Jobless Claims, GE Factory Orders
Friday: US Nonfarm Payrolls
August 2, 2021
EUR/USD 1.1884 GBP/USD 1.3912 USD/CAD 1.2462 AUD/USD 0.7376 USD/JPY 109.45 USD/CNH 6.4614 USD/ILS 3.2250 USD/MXN 19.8272 USD/CHF 0.9047 USD/INR 74.3463 USD/BRL 5.1379 USD/SGD 1.3517 USD/DKK 6.2592 USD/SEK 8.5735 USD/NOK 8.7875
USDThe dollar opens the week softer ahead of US manufacturing data as equities rise shifting investor sentiment. The US Senate is prepared to pass a $550B infrastructure bill this week – the largest spending on public works in decades.GBP
The pound backed off of the 1.40 level and is trading slightly weaker this morning. As part of the UK’s reopening plans, vaccinated travelers from the US and EU will no longer need to isolate upon arrival to the UK.EURFactory hiring data out of the eurozone boosted confidence of workers returning to work and sent the euro higher versus the dollar.CADThe Canadian dollar is little changed from Friday’s close as a softer dollar paired with lower crude oil demand fail to sway the currency one way or another.ASIA/PACIFIC
The Chinese yuan lost ground versus the dollar to begin the week following weaker-than-expected PMI figures.
The Australian dollar leads gainers versus the greenback. The ROBA is expected to keep its rates unchanged this week and is also likely to put off plans to scale back bond purchases amid a resurgence in covid cases.
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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