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

  • FX Rates
    June 7, 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

    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.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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