Dollar steady in quiet markets ahead of Central Bank meetings this week

Dollar steady in quiet markets ahead of Central Bank meetings this week

Markets are generally quiet to begin the week. The ECB, Bank of Canada, and Bank of Japan are scheduled to meet this week and will be followed by a US Fed meeting early next. Inflation is top of mind. Today, eyes will be on the Chicago Fed National Index for Sept. and Dallas Fed manufacturing index for October along with policy statements form central bankers.

Economic Data This Week:

Monday: Germany IFO Business Climate, Chicago Fed and Dallas Fed

Tuesday: US New Home Sales

Wednesday: Bank of Canada rate decision, Bank of Japan rate decision

Thursday: Japan Industrial Production MoM, US Jobless Claims, ECB meeting, US GDP

  • FX Rates
    October 25, 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 is mixed as higher energy prices lend strength to commodity currencies, Treasury yields firm and equity futures are supported by a strong earnings season. President Biden and Congressional Dems are working to make adjustments to the length or breadth of programs in the Family Spending plan to achieve enough moderate votes to gain Congressional approval.

    GBP

    The pound is slightly lower. Bank of England policy maker Silvana Tenreyo advised that the central bank should wait for job market and supply chain recovery ahead of raising interest rates.

    EUR

    The euro slipped slightly after the German IFO survey declined more than expected to six-month lows adding to downward pressure on the common currency.

    CAD

    USD/CAD moved slightly lower as commodity currencies show continued strength. The Bank of Canada is meeting this week, and an asset price taper announcement is expected.

    ASIA/PACIFIC

    China imposed lock down measures on some counties following an outbreak of the delta variant as the country pursues Covid-Zero policy. The offshore yuan remains strong.

    USD/JPY remains below the 114 level which was achieved last week and rose modestly in early markets this morning. The Bank of Japan meets this week and no policy changes are expected.

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

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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