Equities firm, dollar lower on light trading
Global equities edged higher, with tech stocks leading the charge. In general, markets were relatively quiet as investors digest yesterday’s lower-than-expected US inflation data and the speech by the Fed Chair. Powell focused more on existing weak employment than on yet-to-be-seen rising inflation. The dollar is broadly lower for a fifth straight day. Trading activity in all asset classes was particularly light, as Chinese New Year begins today, ending next Wednesday. Prices of bonds, oil and gold are all basically unchanged.
“I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin, but by the content of their character.”
February 11, 2021
EUR/USD 1.2139 GBP/USD 1.3818 USD/CAD 1.2674 AUD/USD 0.7765 USD/JPY 104.68 USD/CNH 6.4185 USD/ILS 3.2498 USD/MXN 19.9201 USD/CHF 0.8902 USD/INR 72.86 USD/BRL 5.3718 USD/SGD 1.3242 USD/DKK 6.1270 USD/SEK 8.3157 USD/NOK 8.4507
The dollar is weaker across the board, dropping by 1.35% over the last five trading days. Traders are digesting dovish comments by Fed Chair Powell and weak inflation figures. This morning’s Initial Jobless Claims for the week ending February 6 were higher-than-expected, but had little impact on markets.GBP
The UK pound is unchanged versus the dollar, but remains not far from yesterday’s two-year highs. Investors are digesting market chatter about the new relationship between the UK and EU, which has not begun as smoothly as most hoped.EURThe euro is higher by 0.22% overnight in-line with broad dollar weakness. Traders await the European Commission’s Economic Forecasts to be published later today.CAD
The loonie gained 0.32% overnight in-line with the broadly weaker US dollar. Traders had little to work with, as commodity prices are basically unchanged and there are no economic data releases today.ASIA/PACIFIC
The Australian dollar was the top performing G-10 currency after Secretary to the Treasury Steven Kennedy made upbeat comments about confidence in an economic recovery.
The Chinese yuan moved little as Chinese New Year kicks off today.
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