Euro sinks as dollar gains

Kathryn Garvey

February 4, 2021

Jobless claims decline; dollar continues to advance

The dollar continues to tick higher for the fourth day this week as optimism on a stimulus bill, signs of economic recovery and advancing equities set the stage. The pound reversed earlier losses after today’s BoE announcement as its common currency neighbor continues to struggle. Markets await more US Jobs data due out tomorrow.

Perpetual optimism is a force multiplier.

Colin Powell

FX Rates
February 4, 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.

EUR/USD 1.1987
GBP/USD 1.3673
USD/CAD 1.2815
AUD/USD 0.7613
USD/JPY 105.35
USD/CNH 6.4723
USD/ILS 3.2853
USD/MXN 20.3111
USD/CHF 0.9028
USD/INR 72.9637
USD/BRL 5.3770
USD/SGD 1.3367
USD/DKK 6.2049
USD/SEK 8.4545
USD/NOK 8.6449
USD
The greenback marched higher for the fourth consecutive day as jobless claims fell more than expected showing signs of a potential downtrend. President Biden’s stimulus bill has the greenlight to pass without widespread support, but the administration is showing some signs of compromise by reducing the threshold for which stimulus checks are distributed.
GBP
The pound earned some ground and bonds fell as BoE expected inflation to rise. Rates were left unchanged at 0.1% and the bond buying program unchanged. The BoE told banks to start preparing for negative interest rates, but said such policy was not imminent.
EUR
The euro continues to lose ground versus the dollar, dropping for the fourth session and touching the lowest level in two months driven mainly by economic concerns over a slow vaccine deployment. Strategists fear a double-dip recession as the eurozone struggles to keep pace with the US and UK.
CAD
The loonie fell versus the US dollar on dollar dominance despite gains in oil prices. The Canadian dollar remains strong versus other currencies as OPEC+ said it will work to clear the surplus left behind from the pandemic.
ASIA/PACIFIC
USD/JPY ticks higher posting a three-month high in the seventh day of gains with supports at 105.00 ahead of 104.50 bids.

The yuan edged higher on Thursday following the Central Bank’s guidance to move the currency higher ahead of the Lunar New Year.

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Kathryn Garvey

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