Investors begin the week in a risk-on mood ahead of a full docket of economic data and the Fed’s two-day policy meeting Tuesday and Wednesday. ISM and PMI data for October will be released early in the week, and Nonfarm Payrolls on Friday. Global equities are mostly in the green, the S&P 500 is opening higher. The dollar is mixed, but generally lower against its peers. US Treasury yields are higher by 2 bps to 1.58%. Oil and gold prices are steady at $84 per barrel and $1,787 per oz., respectively.
Economic data & events:
Monday: US ISM & PMI (Oct)
Tuesday: Eurozone Manufacturing (Oct)
Wednesday: US Factory & Durable Goods orders (Sep), Fed FOMC rate decision, Eurozone Unemployment (Sep)
Thursday: US Initial Jobless Claims, US Trade Balance, Eurozone PPI & PMI, Bank of England policy meeting
Friday: US Change in Nonfarm Payrolls & Unemployment, Canada Jobs data, Eurozone Retail Sales
November 1, 2021
EUR/USD 1.1570 GBP/USD 1.3676 USD/CAD 1.2383 AUD/USD 0.7521 USD/JPY 114.24 USD/CNH 6.3964 USD/ILS 3.1391 USD/MXN 20.7497 USD/CHF 0.9122 USD/INR 74.8737 USD/BRL 5.6600 USD/SGD 1.3495 USD/DKK 6.4299 USD/SEK 8.5551 USD/NOK 8.4081
US stocks are higher on the back of recent positive corporate earnings surprises and expectations for solid ISM and PMI data for October. The FOMC is expected on Wednesday to announce it will begin to taper its $120 billion monthly bond purchases. The US dollar is mixed against its peers, the dollar index is slightly lower.GBP
The UK pound is virtually unchanged from Friday’s close and after a difficult week for the pound which saw it fail to hold above $1.37, where it traded over the last two weeks. Today’s release of UK PMI Manufacturing for October of 57.8 was slightly better than expected and September’s figure. The Bank of England meets on Thursday, and no policy changes are expected.EUR
The euro is up slightly following Friday’s big sell-off, which saw a drop from nearly $1.17 to $1.1535. German retail sales contracted by 2.5% for September, much worse than expectations of a 0.4% increase. There is a full docket of economic releases for the eurozone this week.CAD
The Canadian dollar is steady and remains with the 1.23-1.2425 range in place since mid-October. International trade and employment data for Canada will be released this week.ASIA/PACIFIC
The Japanese yen weakened, taking the USD/JPY back up above 114.00. New Premier Kishida promised to move quickly on a new economic program after a surprisingly quick win in yesterday’s general election.
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
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.
This article is intended for U.S. audiences only.
©2021 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 and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.