Dollar trades at two-month high

The greenback remains supported following hawkish comments from the Fed earlier this week. USDCAD hit levels not seen since April 28th as markets move away from risky assets and WTI oil trades lower. Sterling is under pressure and trading lower as coronavirus cases surge in the nation. The European Central Bank begins a three-day summit today where topics will range from inflation targets to climate change.  

“What I love about Juneteenth is that even in that extended wait, we still find something to celebrate. Even though the story hasn’t ever been tidy, and Black folks have had to march and fight for every inch of our freedom, our story is nonetheless one of progress.”
Michelle Obama
  • FX Rates
    June 18, 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 US dollar is trading near session highs as the currency remains supported by hawkish comments from the Fed. The Fed’s James Bullard stated that the topic of tapering will continue to be discussed at upcoming meetings as the central bank will need to adjust policy to achieve inflation goals.

    GBP

    Sterling fell to weakest level against the US dollar in almost a month as surging coronavirus cases tarnish confidence in the UK’s economic recovery. GBPUSD is down as much as 0.5% as the greenback remains supported on hawkish comments from the Fed earlier this week.

    EUR

    The European Central Bank meets today as the start of a three-day summit. Former President of the European Central Bank and Italian Prime Minister Mario Drahi commented that more stimulus is needed for the region to return to pre-covid trend.

    CAD

    The Canadian dollar is trading at weakest levels since April with USDCAD hitting 1.2399 earlier in the session. Lower WTI oil prices along with broad USD dollar strength has caused the loonie to weaken.

    ASIA/PACIFIC

    The Australian dollar reversed recent losses, as a key economist referred to last month’s employment data as a “game changer”, suggesting that the central Bank may look to raise rates in early 2023. AUD gained as much as 0.5% on the comments.

    The Yen is little changed after the Bank of Japan maintained its current policy rate and confirmed that they would be extending their pandemic support program.  

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.

Cate Camerota
WRITTEN BY
Cate Camerota

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.

Market risk appetite boosts commodity-linked currencies

 

US dollar reversed two-day decline following broader risk sentiment

 

Daily FX Update: USD remains under pressure as markets maintain risk appetite

 

Daily FX Update: Risk-on trading supports commodity-linked currencies

 

Daily FX Update: Inflation concerns push the USD higher

 

Dollar gains vs. other safe havens