Dollar subdued ahead of Friday’s jobs report

Dollar subdued ahead of Friday’s jobs report

The US dollar remains subdued on firming market expectations that the Fed will continue loose monetary policy for a longer period and as ADP payrolls disappoint. Moods are cautious in equity markets today and investors look ahead to Friday’s US monthly jobs report for fresh direction. The New Zealand dollar is the strongest versus the dollar this morning following unemployment numbers which triggered expectations of rate hikes.

“Never doubt that a small group of thoughtful, concerned citizens can change the world. Indeed it is the only thing that ever has.” 

Margaret Mead
  • FX Rates
    August 4, 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 remains trading within a 0.1% range for the third day. ADP private-sector numbers for July fell short of expectations as US companies added 330K jobs versus 653K expected. Equities were pressured following ADP data and markets will watch for Friday’s full jobs report.

    GBP

    The pound ticked higher for a second day. The Bank of England is expected to keep rates unchanged tomorrow despite hawkish comments from some members of the committee.

    EUR

    After losing ground earlier in the session following the downward revision of PMI’s for July, the euro attracted dip-buying to recover. Nearby support is June 18th’s low of 1.1848.

    CAD
    The dollar outperformed versus the Canadian dollar yesterday as WTI trades below $70. The pair is directed by USD sentiment as traders focus on Fed speak and US jobs numbers due out Friday.
    ASIA/PACIFIC

    The yuan climbed versus the dollar after purchasing managers index rose to 53.1, beating analysts estimates.

    The Australian dollar is higher for a third session following RBA’s announcement to continue with the plan of tapering bond purchases.

    NZD was the largest gainer versus the dollar this morning as the jobless rate fell to 4%, fueling expectations of monetary tightening.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
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.

Kathryn Garvey
WRITTEN BY
Kathryn Garvey

Insights from SVB Industry Experts

 
SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Risk-on trading following FOMC meeting

 

Daily FX Update: Busy FX markets ahead of today's Fed meeting

 

Daily FX Update: US snaps three-day winning streak

 

Daily FX Update: US dollar trading at one-month highs

 

Daily FX Update: Dollar gains on “triple-witching”

 

Dollar takes back yesterday’s losses