Dollar strong ahead of ECB central bank forum

Dollar strong ahead of ECB central bank forum

The dollar extends yesterday's gains, breaking key resistance versus the euro. A rise in energy prices and supply chain bottlenecks continue to worry markets amid fears that current inflation may not be transitory. The ECB is hosting its annual central bank forum starting today. Comments by ECB President Lagarde, Fed chair Powell, BoJ Governor Kuroda and BoE Governor Bailey, will be followed closely by financial markets. US stocks are opening higher and UST 10Yr yields are stable near 1.5%.

"Some painters transform the sun into a yellow spot, others transform a yellow spot into the sun.”

Pablo Picasso
  • FX Rates
    September 29, 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 is higher versus G10s with the exception of the yen and Swiss franc. The USD achieved 10-month highs amid month-end rebalancing by global investors and higher treasury yields. Traders will look to today’s central bank forum for clues on monetary policies. On the domestic side, the US Senate is working to come to consensus on a temporary spending bill to avoid a government shutdown.

     

    GBP

    The pound lost 0.4% to the dollar and is at its lowest level since January as inflation fears mount across the UK.

    EUR

    The euro shed another 0.3%, breaking below key support at $1.1663. ECB Governing Council member Makhlouf commented yesterday that the ECB needs to be cautious right now and not raise rates in response to transitory inflation.

    CAD

    The greenback gained against the Canadian dollar amid risk-off trading, strong dollar buying interest and oil prices backing off from 3-month highs.  

     

    ASIA/PACIFIC

    The yen slipped slightly again, reaching an 18-month low versus the dollar.

    Amid Evergrande fallout, China's central bank injected liquidity for the ninth day into the banking system.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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