The US dollar regained some of yesterday’s late afternoon sell-off as investors await the Fed

The US dollar regained some of yesterday’s late afternoon sell-off as investors await the Fed

FX markets saw a surge in the dollar yesterday morning only to give all gains back and close at a loss for the day. Today, the dollar is up as investors await the outcome of the Federal Reserve’s FOMC meeting which begins today and concludes tomorrow with a statement and press conference. The increase in Covid-19 cases due to the delta variant has investors wary of new restrictions and their impact on the US economy. 

"When one door of happiness closes, another opens, but often we look so long at the closed door that we do not see the one that has been opened for us."

Helen Keller
  • FX Rates
    July 28, 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

    Investors seem concerned about betting against the US dollar ahead of tomorrow’s Fed statement and press conference. Political pressure in the US for the Fed to take action on increasing inflation will test the central banks position that price increases are transitory. The dollar is stronger this morning but holds within longer term ranges.


    The pound is slightly weaker this morning vs. the US dollar but has generally held onto yesterday’s late day gains. Another day of falling Covid-19 cases has buoyed GBP. The UK dropped many Covid related restrictions earlier this week and investors will be watching carefully the number of covid cases in the coming weeks for signs of increase and any possible government reaction.


    The euro gave back all of yesterday’s late-day surge vs. the US dollar.  The common currency is hovering around the 1.18 level with 1.1760 becoming a strong support level. Covid case increases led to euro weakness over the past month but with the US case counts now increasing investors may see the dollar being more negatively impacted.


    The Canadian dollar lost ground to the US dollar after Canadian CPI data for June came in at 3.1%, slightly weaker than expected. Many market watchers expect Canada to begin raising interest rates before the United States but, Canada's weaker inflation reading does not support this view.


    Sydney’s lockdown has been extended by a further four weeks as new Covid cases continue to surge. The state of Victoria lifted its fifth lockdown today. The Australian dollar lost 0.2% against the US dollar during today’s session and the ASX 200 lost 0.7%.

    The Chinese renminbi strengthened overnight after yesterday's sell-off which was the weakest performance for the renminbi in 9 months. Speculators seem to be building positions to bet against the renminbi which could reverse quickly.

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
See all of SVB's latest FX information and commentary at

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 You can withdraw your consent at any time.

Peter Compton
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 takes back yesterday’s losses


Daily FX Update: Safe-haven yen and Swissie gain as dollar loses


Daily FX Update: Dollar sinks on weak inflation


Daily FX Update: Dollar gains ahead of tomorrow’s CPI data


Daily FX Update: Dollar slides to end week, equities stronger


Daily FX Update: ECB reduces pace of asset purchases, dollar softens