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.

    GBP

    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.

    EUR

    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.

    CAD

    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).

    ASIA/PACIFIC

    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.

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Scott Petruska
WRITTEN BY
Scott Petruska

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