Equity gains led by Tech, oil hits 7-year high, dollar higher

Equity gains led by Tech, oil hits 7-year high, dollar higher

US equities are opening higher, led by the tech sector, and following foreign stocks, mostly in the green. The tech-heavy NASDAQ index is bouncing hard after yesterdays’ drop to its lowest level since July. WTI oil prices are nearing $80 and natural gas contracts soared to their highest level since 2014. The dollar is higher following a three-day decline. US Treasury 10-year yields remain near 1.5%. Traders are focused on Friday’s US job data.

“You’re off to great places, today is your day. Your mountain is waiting, so get on your way.”

Dr. Suess
  • FX Rates
    October 5, 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 USD index is higher after declining for three days, although its gains are limited and not universal. In today’s risk-on mood, the safe haven Japanese yen and Swiss franc performed the worst, while oil-rich Norway saw its krone as the top performer.

    GBP

    The UK pound moved little overnight, despite upbeat news today on September UK PMI data. Traders are generally bullish the pound amid expectations that the Bank of England will soon begin to reduce stimulus/tighten policy to address excessive inflation.

    EUR

    The euro is down nearly 0.25% overnight in line with broad dollar strength and following news that Eurozone PMI’s in September and PPI for August were lower than expected. Retail Sales for August will be released tomorrow.

    CAD

    The loonie gained a bit overnight against the US dollar, despite soaring energy prices. USD/CAD continues to trade under 1.26, but within a 1.25-1.29 range over the last two months. Traders await Canada’s employment data on Friday.

    ASIA/PACIFIC

    The Japanese yen was the worst performing currency overnight, down nearly 0.4%. No specific news was driving the currency lower, but comments from Japan’s Foreign Minister Motegi about supporting Taiwan amid regular incursions by Chinese military aircraft may be unsettling traders.

    Australia’s central bank kept policy unchanged. New Zealand’s central bank meets tomorrow, and increased uncertainty about whether or not it will hike rates has led to higher currency option prices/more protection.

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Scott Petruska
WRITTEN BY
Scott Petruska

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