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. 

    GBP

    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. 

    EUR

    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. 

    CAD

    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.

    ASIA/PACIFIC

    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. 

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Peter Compton
WRITTEN BY
Peter Compton

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