Jobs data outperforms, dollar higher

Jobs data outperforms, dollar higher

The dollar is higher versus all G-10 peers following blowout employment figures and revisions to previous month figures. A beat in labor data sent the dollar to weekly highs. Workplaces continue to adjust to the changing covid landscape as some companies delay returning plans to as late as February 2022. This weekend, the Senate is expected to vote on the $550B infrastructure bill.

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  • FX Rates
    August 6, 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

    US employment figures show 943K jobs were added in July, showing strength of recovery and beating estimates of 858K. June was also revised upwards from 850K to 938K and the unemployment rate dropped from 5.9% to 5.4%. US Treasury yields continue to rally adding strength to the greenback. Traders are betting on a quicker rate of Fed rate hikes following firm labor momentum.

    GBP

    The pound fell as the dollar drove G-10’s direction on payroll beat. The Bank of England said continued work from home is driving a property price surge in the UK.

    EUR

    Dollar drove direction for the EURUSD cross taking 0.3% away from the common currency. The euro crossed below 1.18 and nearby support is at 1.1751.

    CAD

    The Canadian dollar continued to lose ground following US outperformance on employment data and as the Canadian economy added only 94K jobs, missing expectations of 150K.

    ASIA/PACIFIC

    The Chinese yuan lost ground on strong dollar buying sentiment. Markets will focus on PBOC and Fed stances in the coming months.

    The Australian dollar fell for the first time this week following the worsening delta variant outbreak in Sydney.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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