Dollar stronger to end week

Kathryn Garvey

March 12, 2021

Dollar stronger to end week

Last night, President Biden addressed the United States and announced he aims to vaccinate enough Americans so that July 4^th activities can resume this year. US treasury yields are driving the dollar higher versus G-10 currencies as equities begin the day in the red. This weekend marks one year since stay at home orders were announced in many US cities.

“Hope is a waking dream.”

Aristotle

FX Rates
March 12, 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.

EUR/USD 1.1932
GBP/USD 1.3886
USD/CAD 1.2514
AUD/USD 0.7751
USD/JPY 108.99
USD/CNH 6.5028
USD/ILS 3.3010
USD/MXN 20.7643
USD/CHF 0.9297
USD/INR 72.79
USD/BRL 5.5627
USD/SGD 1.3453
USD/DKK 6.2314
USD/SEK 8.4950
USD/NOK 8.4478
USD
The dollar is stronger this morning. PPI data came in at 2.8% YOY for February – higher than expectations and the largest increase since October 2018. Higher than expected PPI data is mounting evidence for inflation. The gains on the dollar holds the currency above the 100 DMA as the greenback outperforms all peers. Key to the dollar’s strength are returns on US bond yields which are holding above 1.6% after the passage of recent fiscal stimulus.
GBP
The pound is down 0.7% versus the dollar but holding above a firm 55-DMA support. The UK economy performed better than anticipated in January, with GDP falling 2.9% MoM vs the 4.9% anticipated, leaving the economy 9% smaller that it was in February.
EUR
The euro lost 0.5% versus the dollar in mid-month turnover. Eurozone production came in at 0.8% MOM for January, above expectations of 0.2%.
CAD
The Canadian dollar jumped on employment data which showed 259K jobs added in February, above expectations of 98K and dropping the unemployment rate 1.2% to 8.2% - the lowest level since March of last year.
ASIA/PACIFIC
Offshore Chinese yuan was sent lower following new US licensing limits on Huawei suppliers. The Japanese yen continues to be the worst performing currency YTD and trades near the 109 level.

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Kathryn Garvey

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