Lower dollar to end week as cautious risk sentiment returns

Lower dollar to end week as cautious risk sentiment returns

The dollar is slightly lower today as risk sentiment returns following yesterday’s sell-off in equities. US treasuries bounced after falling as low as 1.25% on Thursday. The dollar is lower versus the pound, euro and Canadian dollar, and gained some ground versus the Japanese yen.

"Deep summer is when laziness finds respectability."
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  • FX Rates
    July 9, 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
    Risk sentiment improved today sending the dollar lower, despite an overall caution in equity markets globally. Investors will look ahead to next week’s economic calendar which includes inflation, retail sales and industrial production.  
    GBP
    The pound edged higher versus the weaker dollar, but is on track to end lower for a second consecutive week. The pound’s gains are capped by growing fears of the Delta variant and data suggesting the post-lockdown economic rebound is slowing in the UK.
    EUR

    The euro rose for the second day following ECB President Christine Lagarde’s comments on the bank’s new strategy. The strategy set a new inflation target at 2%, as opposed to the former target of “below but close to 2%”. The bank also signaled that sustained periods of low inflation could require continued monetary action.

    CAD

    The Canadian dollar reversed yesterday’s losses following jobs data that showed the economy added over 230K jobs last month – beating expectations of 175K.

    ASIA/PACIFIC

    PBOC cut its reserve requirement strengthening the offshore yuan in an effort to support small and medium sized firms that have been facing rising costs.

    The dollar rose modestly versus the Japanese yen, but has failed to recoup yesterday’s losses.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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