The dollar is mixed versus peers on a full day of data that includes an announcement from the ECB, jobless claims and Q3 growth for the US. The ECB left rates unchanged as expected, leaving the eurozone area behind other increasingly hawkish central banks. Markets will watch the Fed and BoE comments closely next week. On the domestic side, President Biden will visit the Hill today to attempt to push forward his economic agenda. The White House has made concessions to its once lofty bill in an attempt to pass something soon.
"The way I see it, if you want the rainbow, you gotta put up with the rain."
October 28, 2021
EUR/USD 1.1645 GBP/USD 1.3778 USD/CAD 1.2348 AUD/USD 0.7523 USD/JPY 113.47 USD/CNH 6.3928 USD/ILS 3.1675 USD/MXN 20.2995 USD/CHF 0.9155 USD/INR 74.9205 USD/BRL 5.5990 USD/SGD 1.3455 USD/DKK 6.3850 USD/SEK 8.5565 USD/NOK 8.3520
US growth numbers for Q3 showed a sharp decline as consumer spending was impacted by the Delta variant and supply chain problems. The economy grew at just 2% - a slowdown from strong 6.7% growth in Q2. Jobs data for the week ending October 23 showed that first-time filers for unemployment benefits fell to a pandemic low.GBP
The pound is relatively quiet today, edging higher versus USD following yesterday’s upbeat economic and fiscal outlooks from the Bank of England. There is no data out of the UK today, so GBP/USD will be swayed by market reactions to US data. Bank of England seems set to tighten by end of year.EUR
EUR/USD shot higher following the ECB’s decision to leave rates unchanged. ECB President Christine Lagarde pushed back on market hawks in the press conference and commented “our analysis certainly does not support that the conditions of our forward guidance are satisfied at the time of liftoff as expected by markets nor any time soon thereafter.”CAD
The Canadian dollar surged after the BoC announced Wednesday that it would end its bond purchase stimulus program as well as accelerate the potential timing of future interest rate increases. This announcement surprised investors causing CAD to appreciate more than 0.50%.ASIA/PACIFIC
JPY gained ground versus the dollar following the BoJ’s decision to keep rates unchanged and after it trimmed economic growth forecasts.
The PBOC set a weaker yuan rate for the 7th straight day.
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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