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%.
    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/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.

    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.


    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%.

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Cate Camerota
Cate Camerota

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