Equities start the month higher, dollar soft

Equities start the month higher, dollar soft

Traders are starting September in a risk-on mood, fueled by the belief that central banks will continue to provide stimulus to deal with an expanding pandemic and to support economic recovery. US equities opened up following higher Asian equities, led by China, Singapore, and Japan - each country’s index gaining over 1%, and European equities led by France’s CAC 40 index which gained 1.4%. The dollar is lower following this morning’s weak employment data and ahead of data to be released over the remainder of the week. Oil prices are soft ahead of an OPEC+ meeting today to discuss increasing output levels.

"The measure of intelligence is the ability to change." 
Albert Einstein
  • FX Rates
    September 1, 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 index is lower following an ADP Research Institute report that showed that Business Payrolls rose less than expected, indicating that companies are still struggling to fill vacant positions. The risk-on market mood led high-beta currencies – AUD, MXN, RUB - higher, and the safe-havens JPY and Swiss franc lower.


    The UK pound remains steady despite better-than-expected Nationwide House Price Index and Manufacturing PMI for August. Traders are starting to take into account Brexit-related political risk associated with the end of the grace period at month-end September for the Northern Ireland-UK trade check issue.


    The euro is little changed overnight, as traders digest EZ’s high inflation figures and yesterday’s hawkish ECB comments in light of an underlying uber-dovish monetary policy. Eurozone Manufacturing PMI for August and Unemployment for July both came in as expected. Traders are focused on more key economic data this week, including PPI, PMI and retails sales.


    The Canadian dollar is up slightly on the back of the risk-on market mood, which is fueling a broadly weaker dollar, and despite soft oil prices. Canada’s federal elections on September 20 may see PM Trudeau’s Liberal party challenged by the Conservative party (the party with the most votes forms the government, and its leader becomes the Prime Minister).


    The JPY is lower for the third day amid the risk-on mood in the markets but still hovers around the 110 level.

    CNY is weaker following yesterday’s worse-than-expected China Mfg PMI data for August.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.

Scott Petruska
Scott Petruska

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Risk-on trading following FOMC meeting


Daily FX Update: Busy FX markets ahead of today's Fed meeting


Daily FX Update: US snaps three-day winning streak


Daily FX Update: US dollar trading at one-month highs


Daily FX Update: Dollar gains on “triple-witching”


Dollar takes back yesterday’s losses