US dollar tests key support levels as optimism overcomes inflation concerns

US dollar tests key support levels as optimism overcomes inflation concerns

The dollar is weaker with the Bloomberg dollar index (BBDXY) hovering just above the lows of January and the lows of 2018. A fall below these crucial levels could see the dollar accelerate declines. Much of the European continent is closed today for Whit Monday. Commodity currencies such as the Canadian dollar continue to do well on strong demand outlook as the global economy grows following the pandemic. 

Economic Data for this Week:

Tuesday: New Home Sales for April; Conference Board Consumer Confidence for May

Thursday: Durable Goods orders for April, Weekly Jobless Claims

Friday: PCE Deflator for April, Wholesale and Retail Inventories for April, Univ. of Mich. Sentiment for May

  • FX Rates
    May 24, 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 dollar is weaker to start this last week of May after Republicans rejected President Biden’s proposed infrastructure package over the weekend. Biden had lowered the spending from $2.25T to $1.7T in part to gain some bi-partisan support. 


    The pound is stronger this morning on overall dollar weakness and after the Confederation of British Industry (CBI) proposed a GBP 700B economic plan for the government to incentivize innovation and investment. 


    The euro is stronger this morning on overall dollar weakness with most of continental Europe on holiday today. With no economic activity, the euro rebounded from losses late last week as investors turned optimistic after Markit Composite PMI for the eurozone beat expectations. 


    The Canadian dollar is stronger this morning on an increase in the price of oil. FX and oil traders see the supply and demand of oil steadily increasing to meet great economic activity as pandemic related restrictions loosen around the world. The loonie is trading at its strongest levels since 2015.


    Chinese renminbi is stronger overnight after comments by China’s central bank stressing the currency will be stable despite increasing inflationary pressures. China authorities warned industrial metals producers in the country to refrain from price gouging. 

    The Australian dollar was left out of a commodity currency rally as China’s warning on metals prices hit the price of iron ore. 

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.

Daily FX Update: Dollar stronger to begin week; US domestic policy in focus


Daily FX Update: US dollar to end week trading higher


Risk-on trading following FOMC meeting


Daily FX Update: Busy FX markets ahead of today's Fed meeting


Daily FX Update: US snaps three-day winning streak


Daily FX Update: US dollar trading at one-month highs