Rising coronavirus cases around the world tilted investment sentiment away from risk assets. The UK shows a fifth day of reduced covid case numbers helping to lift the pound while the Aussie dollar struggles to keep pace on fears over low vaccination rates. Equity markets in China tumble weakening the offshore yuan. Investors see a heavy hand in China as state regulators exert more control on industry.
Economic Data for this Week:
Tuesday: Durable Goods Orders for June, S&P CoreLogic house price changes for May, Conference Board Consumer Confidence for July
Wednesday: Retail & Wholesale Inventories for June, FOMC Rate Decision and press conference
Thursday: Weekly Initial Jobless Claims, GDP for Q2Pending Home Sales for June
Friday: PCE Deflator for June; Univ. of Michigan Consumer Confidence for July
-
FX Rates
July 26, 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 1.1786 GBP/USD 1.3793 USD/CAD 1.2583 AUD/USD 0.7362 USD/JPY 110.2900 USD/CNH 6.4895 USD/ILS 3.2651 USD/MXN 20.0892 USD/CHF 0.9190 USD/INR 74.4200 USD/BRL 5.2151 USD/SGD 1.3601 USD/DKK 6.3101 USD/SEK 8.6552 USD/NOK 8.8550
-
USD
The dollar begins the week by giving up all last week’s gains in volatile trading amid record low yield on the 10 year and as virus fears boost treasury buying ahead of FOMC announcement this week.
The US Federal Reserves’ Federal Open Market Committee (FOMC) begins a two-day meeting tomorrow which concludes with a statement and Q&A with the press. The Feds' views on inflation are now firmly in the political arena as Republicans point to higher inflation as a reason to delay or cancel spending on infrastructure.
GBPThe British pound is stronger on overall US dollar weakness and reports of a fifth consecutive day of decreasing numbers of covid cases.
EURThe euro gained vs. the US dollar despite the German IFO Business Climate index for July coming in at 100.8 vs. the 102.2 expected. Protests in some European countries against covid restrictions over the weekend highlighted the split in public opinion and the lack of consensus amongst politicians.
CADThe Canadian dollar is slightly stronger despite lower oil prices. The C-dollar gained on overall US dollar weakness and views that the Canadian’s higher levels of vaccination rates will benefit the economy in the long run.
ASIA/PACIFICThe safe haven Japanese yen is stronger this morning on increasing numbers of covid cases in numerous countries around the world.
The Chinese renminbi lost ground to the US dollar this morning as equity markets sink in China. The Chinese government set new rules around education tech companies essentially making them non-profits leading investors to speculate which sector will be tampered with next and sending investment capital out of the country.
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. |
