FX markets trade on Covid related news

FX markets trade on Covid related news

As concerns around the spread of the coronavirus and the delta variant continue, the demand for safe haven assets has increased. The US dollar is trading stronger at levels not seen since April while other commonly traded currencies are hitting multi-month lows. OPEC+ came to an agreement on Sunday to increase production by 400k bbl/day.

Economic Data:

Tuesday: US Housing Starts

Thursday: US Initial Jobless Claims; ECB meeting & Rate Decision

Friday: Eurozone Manufacturing PMI

  • FX Rates
    July 19, 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 Bloomberg dollar index hit levels not seen since April 5, rising as much as 0.4%.
    GBP
    Sterling fell to a three-month low as concerns of the delta variant have boosted demand for haven assets. On Monday, the UK ended coronavirus restrictions despite the nation’s Covid cases rising the most in the world.
    EUR
    EUR/USD is trading 0.3% lower amidst broad USD strength and safe haven demand. The market will be focused on the upcoming ECB meeting set for Thursday.
    CAD

    OPEC+ agreed on Sunday to allow supply hikes of +400k bbl/day. This initially deflated prices but the market remains tight. USD/CAD is trading higher breaking above the 1.28 level earlier in the session.

    ASIA/PACIFIC

    The Australian dollar hit a 7-month low following tightened and extended lockdowns by the state governments. The Japanese yen strengthened as demand for haven assets increased. USD/JPY fell as much as 0.3%.

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

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.

Cate Camerota
WRITTEN BY
Cate Camerota

Insights from SVB Industry Experts

 
SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Daily FX Update: Dollar continues slide despite volatility

 

Daily FX Update: Pessimism can’t help dollar

 

Daily FX Update: Dollar set to finish trading higher for a second week

 

Daily FX Update: EUR climbs higher following decision from ECB

 

Daily FX Update: Risk-off trading continues, USD supported

 

Daily FX Update: USD remains strong against peers