.png){kind=logo}
Global equities are mixed and the dollar is slightly lower today, as traders focus attention on the potential economic impact from the spreading Delta variant and on this week’s upcoming US inflation data. Last Friday’s strong US payroll data led to increased expectations of higher US rates, which triggered a sell-off in oil and gold prices, but did not prevent US Treasury 10-Year yields from falling to 1.27%. Traders are beginning to shift attention to the Kansas Fed’s Economic Policy Symposium in Jackson Hole on August 26-28 when Fed Chair Powell will speak.
This week's economic data:
Monday: US Jobs Openings and Labor Turnover Survey (JOLTS) (June); Eurozone CPI, Industrial Production and Unemployment
Tuesday: US Unit Labor Costs (Q2); Nonfarm Productivity (Q2)
Wednesday: US CPI (July); Real Ave Weekly Earnings
Thursday: US PPI (July); Initial Jobless Claims; UK GDP (Q2), Industrial Production (June)
Friday: US Import Prices (July)
-
FX Rates
August 9, 2021Rates 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.
EUR/USD 1.1763 GBP/USD 1.3871 USD/CAD 1.2547 AUD/USD 0.7361 USD/JPY 110.03 USD/CNH 6.4811 USD/ILS 3.2152 USD/MXN 20.0396 USD/CHF 0.9168 USD/INR 74.26 USD/BRL 5.2358 USD/SGD 1.3557 USD/DKK 6.3231 USD/SEK 8.6846 USD/NOK 8.1934
-
USD
A strong US job’s report reading on Friday led to increased concern that the Fed will begin to taper its asset purchases sooner than later this year. Inflation data will be released later in the week – CPI on Wednesday, PPI on Thursday, and Import Prices on Friday. Current expectations of high figures will have traders trying to determine if such data will change the Fed’s current inflation “transitory” story.
GBPThe UK pound is slightly higher on the back of last week’s hawkish turn by the Bank of England. Traders have increased the odds of a rate hike in February to 60%. Traders look forward to a slew of economic data on Thursday – Construction Output, GDP, Government spending, and Industrial Production, Exports/Imports.
EURThe euro held steady today, as traders digest a slew of economic data releases for the eurozone. Aside from lower Industrial Production, most economic data – current account/trade balance, unemployment – improved over the previous period.
CADThe Canadian dollar outperformed most G-10 currencies despite lower oil prices. The only data released today was the Bloomberg Nanos Confidence Survey, which was slightly higher than the prior period.
ASIA/PACIFICThe Chinese yuan moved little since Friday. There were no economic releases today, but Retail Sales and Industrial Production next week will be closely watched.
The Japanese yen outperformed, but the USD/JPY remains above the key 110 level.
For more analysis on FX markets or information regarding SVB's FX services:
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.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
| Source: Bloomberg | |
This article is intended for U.S. audiences only. ©2022 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. |
