Jobless claims decline; dollar continues to advance

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.


  • 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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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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