.png){kind=logo}
Dollar stronger to begin week; US domestic policy in focus
The dollar begins the week mildly higher lifted by strong durable goods data and risk sentiment for the US currency. Aussie and CAD outperform vs. the greenback helped by rising commodity prices. The euro didn’t show any major direction following German election. US investors will be laser focused on domestic policy this week, as the House seeks to pass two major spending bills.
This week's economic news:
Monday: US Durable Goods, Dallas Fed Manufacturing
Tuesday: US Consumer Confidence, Wholesale inventories
Wednesday: Mortgage Applications
Thursday: FR and GE CPI, UK Housing
Friday: IT Markit Manufacturing, GE Markit Manufacturing, UK PMI
-
FX Rates
September 27, 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 1.1695 GBP/USD 1.3700 USD/CAD 1.2655 AUD/USD 0.7270 USD/JPY 110.95 USD/CNH 6.4620 USD/ILS 3.2015 USD/MXN 20.1400 USD/CHF 0.9277 USD/INR 73.8400 USD/BRL 5.3350 USD/SGD 1.3537 USD/DKK 6.3580 USD/SEK 8.6950 USD/NOK 8.6010
-
USD
The dollar is modestly higher to begin the week even as rising energy prices and higher global bond yields pressure traditional haven currencies. US durable goods rose 1.7% MoM, beating expectations and supporting the greenback.
It’s a busy week in the House this week as Pelosi works to pass two packages: the first, a $1T infrastructure bill and the second, a $3.5T spending bill on social safety net, climate change mitigation and education. An inflection point for President Biden’s domestic agenda comes as the government also works to pass a short-term spending bill to avoid a government shutdown Oct 1.
GBPSterling rose just slightly as UK 5-year inflation rates rise over 4%. BoE Governor Andrew Bailey is expected to speak this week. Traders will listen to his words carefully and will focus on quarter-end activity. Nearby support is just above $1.3600.
EURThe euro fell below $1.1700 as selling pressure is fueled by rising EU bond yields. After 16 years as Chancellor, Angela Merkel did not seek reelection and Olaf Scholz – a Social Democrat - defeated Conservatives in a tight German election. Coalition talks will begin and could last several months. German stocks outperformed this morning on expectations of greater public spending.
CADA pickup in USD demand helped USD/CAD bounce off 2-week lows. Upside may remain capped, as oil prices continue to rise.
ASIA/PACIFICJPY selling pressure sends USD/JPY 0.2% higher with YTD highs in sight.
The Australian dollar gained versus the US dollar helped by rising commodity prices and as fears of a China Evergrande meltdown recede.
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. |
