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Dollar steady, stocks higher after Trump signs stimulus package
Global stocks moved higher after President Trump signed a $2.3 trillion coronavirus relief and government fiscal stimulus package. The UK pound briefly breached $1.36 following a Christmas Eve EU/UK post-Brexit agreement. The German DAX stock index soared to a record high today and Asian stocks were strong. US Treasury 10-YR yields edged higher. Oil is unchanged and gold edged higher. Market trading is expected to be light this week.
Economic Data:
Monday: Dallas Fed Man Activity (Dec)
Tuesday: Case-Shiller US National Home Price Index (Oct)
Wednesday: Pending Home Sales (Nov), Wholesale Inventories (Nov), Advance Goods Trade Balance (Nov)
Thursday: Initial Jobless Claims (Dec 26)
Friday: Stock and bond markets are closed in observance of New Year’s Day
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FX Rates
December 28, 2020Rates 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 1.2224 GBP/USD 1.3516 USD/CAD 1.2831 AUD/USD 0.7590 USD/JPY 103.65 USD/CNH 6.5364 USD/ILS 3.2117 USD/MXN 20.0052 USD/CHF 0.8886 USD/INR 73.5038
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USD
Trump’s signing of the stimulus package fueled investor optimism, pushing global stocks to fresh highs. The dollar is little changed in light trading in the holiday season. US 10-YR Treasury yields rose by 3 bps to 0.96%.
GBPThe pound traded briefly above $1.36 following the Christmas Eve EU-UK trade agreement, but now trades closer to $1.35. The trade deal provides relief to investors and companies, avoiding potential punitive tariffs and a messy no-deal divorce from the UK’s largest trading partner. UK equity markets are closed today for an extended holiday.
EURThe euro traded to a high of $1.2250 following the EU-UK trade agreement. Spain confirmed its first case of a coronavirus variant found recently in the UK.
CADThe Canadian dollar is the top performing G-10 currency over the weekend. Higher oil prices and the risk-on mood in markets fueled CAD gains.
ASIA/PACIFICMost Asian EM currencies gained versus the dollar following Trump’s signing of the stimulus package, which fueled demand for risky assets and currencies.
The Chinese yuan moved little over the weekend. Chinese authorities ordered Jack Ma’s Ant Group, the world’s biggest fintech firm, to return to its origins as a payment service provider, and comply with regulatory issues with its credit, insurance and wealth management services.
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