Equities rally to end tough week, dollar lower

Equities rally to end tough week, dollar lower

The S&P 500 opened higher today, but still recorded its worst weekly performance since February. A sell-off in commodity prices helped calm traders who have been worried about inflation risks. Foreign stocks showed strength, Asian markets advancing more than 1%. The dollar is broadly lower and US Treasury yields are lower by 2-3 bps. Oil is up slightly, but iron ore prices fell 6%, the most in three months. US Retail Sales for April released this morning were weaker than expected.

 

 

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  • FX Rates
    May 14, 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 broadly lower amid a renewed risk-on mood in the markets. The dollar downtrend which began in April remains intact. April Retail Sales MoM at 0.0% was much lower than 1.0% expected and 9.8% in March. April Industrial Production MoM at 0.7% was lover than 0.9% expected and 1.4% in March.

    GBP

    The UK pound was up slightly on the back of the broadly weaker dollar. It’s five-week uptrend is intact, and trades within sight of a two-month high at 1.4182. The UK’s stock market has been showing relatively good gains, as it is less reliant on the tech sector, which has been particularly impacted by the higher inflation data. Traders look forward to a heavy slate of UK economic data next week.

    EUR

    The euro is up 0.4% overnight amid the weaker US dollar. The EUR/USD remains near its highs of the week and only 1.3% from its YTD high at $1.2350. Traders look forward to a heavy slate of eurozone aggregate economic data next week.

    CAD

    The Canadian dollar is up nearly 0.5% overnight amid higher gold and oil prices, and as concern over US inflation abates. Yesterday’s comments by BoC Governor Macklem did little to change the strengthening direction of the CAD, which has accelerated over the last month. Canada’s Manufacturing Sales for March of 3.5% met expectations.

    ASIA/PACIFIC

    The Chinese yuan and Japanese yen moved little overnight. There were no economic data releases overnight, but next week there is a full docket for both countries.

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Scott Petruska
WRITTEN BY
Scott Petruska

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