Reports that Biden plans $2T in new stimulus spending sends dollar higher

The US dollar is generally stronger vs. other major currencies on news that President-elect Joe Biden will propose a large stimulus spending package later today. The dollar was up overnight on the possibility more lockdown measures would be necessary. The central bank of Israel indicated massive intervention may be necessary in 2021 to prevent the shekel from further appreciation.

"What seems to us as bitter trials are often blessings in disguise."
Oscar Wilde
  • FX Rates
    January 14, 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 gained in morning trading relative to most major currencies, whereas commodity currencies strengthened. Some profit taking on short dollar positions help the greenback as did news of additional stimulus. Initial Jobless Claims for the week of January 9 increased to 965K which was far higher than the 789K expected and the prior week's of 784K. A weaker job market reinforces the need for bigger stimulus packages.

    GBP
    The pound lost ground vs. the dollar on overall dollar strength. Also, FX traders noted significant selling pressure as the pound approached 1.37 yesterday. There have been large speculative bets on the strengthening pound which began to unwind overnight causing the pound to weaken.
    EUR

    The euro is trading at is weakest levels in a month vs. the US dollar. Political disruption in Italy added some uncertainty to the eurozone economy after a small political party pulled out of the ruling coalition putting the existing administration at risk.

    CAD

    The Canadian dollar is flat vs. the US dollar in volatile trading. Commodity prices have been generally strong lifting all commodity currencies. Despite the price of oil being slightly lower this morning, the Canadian dollar is gaining on overall US dollar weakness.

    ASIA/PACIFIC

    The Australian dollar slipped in morning trading after being stronger overnight.  Commodity currencies are generally expected to gain as more stimulus spending is announced by the US and other countries.

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Peter Compton
WRITTEN BY
Peter Compton

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