Dollar weaker to begin week
Markets are mixed this morning in quiet trading as the dollar, euro, and Canadian dollar lag peers. Over the weekend, G7 nations reached an agreement on a global minimum corporate tax rate making it less advantageous to relocate for tax reasons. Treasury Secretary, Janet Yellen, also made comments that President Biden should push forward with his $4T infrastructure plan regardless if it causes higher interest rates and inflation.
Economic Data for this week:
Tuesday: German ZEW survey
Wednesday: Bank of Canada (BoC) Rate Decision
Thursday: US Jobless Claims, US CPI
Friday: Univ. of Michigan Sentiment
June 7, 2021
EUR/USD 1.2177 GBP/USD 1.4174 USD/CAD 1.2083 AUD/USD 0.7760 USD/JPY 109.23 USD/CNH 6.3977 USD/ILS 3.2468 USD/MXN 19.7963 USD/CHF 0.8981 USD/INR 72.81 USD/BRL 5.0563 USD/SGD 1.3234 USD/DKK 6.1072 USD/SEK 8.2640 USD/NOK 8.2819
After slipping Friday following jobs growth, the dollar stabilized this morning in quiet trading. Markets look ahead to inflation data out Thursday. Following Yellen’s comments, the dollar initially saw some buying interest, but was unable to maintain momentum.GBP
After the dollar advanced slightly, investors bought the dip and sterling has since turned positive on the day. Doubts over UK’s re-opening plan and relations with the EU cap gains on the currency.EUR
The euro holds above 1.2100 this morning on a slightly weaker dollar and in range-bound trading to start the week. The pair looks towards Thursday’s inflation data for fresh direction.CAD
The Canadian dollar strengthened amid a softer USD. Strategists eye a key 1.20 level – last seen in 2015. BoC meets Wednesday and no changes are expected.ASIA/PACIFIC
The Japanese yen is stronger versus the dollar and breached the 55 daily moving average line showing signs of dollar weakness and a stronger yen. The next key level of support is 108.55.
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
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