Higher than expected Retail Sales data boosts the US dollar after losing ground yesterday

Higher than expected Retail Sales data boosts the US dollar after losing ground yesterday

Headline Retail Sales for August (+0.7%) were much better than expected (-0.07%), however July (-1.8%) was revised down from (-1.1%). The dollar, which had rebounded from yesterday’s losses overnight, added to its gains vs. mostly all of its peers. FX markets will begin to turn their attention to next week's Fed meeting and elections in Canada (Monday) and Germany (Sept. 26).

Success is a science, if you have the conditions, you get the results.”

Oscar Wilde
  • FX Rates
    September 16, 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

    Economic data helped lift the US dollar as Retail Sales and the Philadelphia Fed Business Outlook (30.7) index both came in better than expected (19). Weekly Jobless Claims (332K) were slightly higher than expected (322K).

    GBP

    Sterling lost ground vs. the US dollar on stronger US economic data. The pound fell below the 1.38 level and remains in a broad trading range of between 1.36 and 1.39.

    Yesterday’s higher than expected inflation data fueled speculation that the Bank of England may begin tapering sooner than anticipated thereby limiting the pound's losses.

    EUR

    The euro hit a new low for September on overall dollar strength. Financial markets will be focusing on next week’s regularly scheduled FOMC meeting and the General Election in Germany on September 26.

    CAD

    The Canadian dollar follows oil lower in the face of an election set for Monday.  Prime Minister Justin Trudeau is in a dead heat vs. the Conservative candidate Erin O’Toole.

    The price of oil, which is priced globally in US dollars, is lower this morning in part to reflect the stronger dollar. Production in the Gulf of Mexico began to come back online and is now at 70% capacity.

    ASIA/PACIFIC

    The yen is weaker as risk-on sentiment hits demand. Also, the Japanese government has cut its assessment of the economy for the first time in 4 months following the recent extension of its latest COVID-19 related lockdown.

    The Australian dollar weakened after jobs data for August came in weaker than expected showing net job losses of 146,000. The New Zealand dollar lost ground despite posting stronger GDP gains than expected.

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.

Peter Compton
WRITTEN BY
Peter Compton

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.

Dollar gains vs. other safe havens

 

Dollar trades at lowest in 2 weeks

 

Daily FX Update: CPI at 5.4% keeps tapering on the table

 

Daily FX Update: Dollar kicks off week stronger

 

Daily FX Update: US jobs data disappoints, equities and bonds steady, dollar lower

 

Putin offers to stabilize energy markets, equities higher, dollar mixed