ECB reduces pace of asset purchases, dollar softens

ECB reduces pace of asset purchases, dollar softens

Equities remain flat as a result of cautious trading while the Swiss franc and Japanese yen gained as havens and the dollar dropped. Both the pound and euro are stronger versus the dollar as UK Parliament backs PM Johnson’s tax plan, and ECB reduces pace of asset purchases.

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  • FX Rates
    September 9, 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 softened slightly this morning despite an overall movement to haven currencies. Initial jobless claims out this morning posted a sharp drop to 310K – a new pandemic low. Continuing claims also fell 22K.
    GBP

    Sterling recovered losses from earlier in the week gaining 0.5% versus the greenback. The currency edged higher after British lawmakers backed PM Johnson’s tax hike plan announced earlier this week.  

    EUR

    The euro made modest gains versus the dollar following ECB’s announcement that they would reduce the pace of bond purchases. Over the next 3 months, the ECB will buy bonds at a slower pace than in the previous two quarters in a step towards unwinding emergency aid put in place during the pandemic. The ECB also raised growth forecast for the EU to 5% versus a 4.6% estimate.

    CAD

    The Bank of Canada left interest rates unchanged along with the current QE program in place. USD/CAD remains in range following a two-day rally.

    ASIA/PACIFIC

    In China, factory gate inflation hit 13-year highs in August despite efforts by Beijing to cool inflation. Consumer inflation slowed unexpectedly showing a signs of lessened consumption. The offshore yuan gained slightly versus the dollar.

    The JPY also gained versus the dollar in safe-haven flight by investors amid cautious risk tone.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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