Risk-on sentiment returned to markets as both the S&P and Dow closed at record highs. Earnings week and Central Bank week continue today with the Bank of Canada beginning their two-day meeting. Haven currencies are weaker versus peers.
“Life is like riding a bicycle, to keep your balance, you must keep moving.”
October 26, 2021
EUR/USD 1.1617 GBP/USD 1.3797 USD/CAD 1.2353 AUD/USD 0.7521 USD/JPY 114.1 USD/CNH 6.3793 USD/ILS 3.2008 USD/MXN 20.1480 USD/CHF 0.9199 USD/INR 74.9563 USD/BRL 5.5735 USD/SGD 1.3464 USD/DKK 6.4039 USD/SEK 8.5900 USD/NOK 8.3262
Dollar moved lower as upbeat earnings reports boosted investor sentiment. The dollar is nearing its 55-DMA. US Data out today includes Sept. New Home Sales, FHFA house price index and October consumer confidence.GBP
The pound picked up 0.40% versus the dollar amid dollar selling and optimism surrounding recovery from the COVID-19 pandemic. Modeling from the UK government suggested infections could decline significantly in the coming months.EUR
The euro sold off yesterday and has some renewed buying interest this morning. Investors will pay attention to Christine Lagarde’s comments after the ECB meeting Thursday.CAD
USD/CAD fell, giving up gains from yesterday as the BoC begins its two-day policy meeting today.ASIA/PACIFIC
The Japanese yen is also weaker versus G10 as havens take a backseat to equities.
The offshore yuan rose in the wake of a call between Chinese Vice Premier Liu He and US Treasury Secretary Janet Yellen.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory
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.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
This article is intended for U.S. audiences only.
©2022 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.
The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.