Powell disappoints, upbeat US jobs data, dollar higher

Powell disappoints, upbeat US jobs data, dollar higher

Fed Chair Powell’s vow to keep an easy monetary policy disappointed markets, triggering another round of bond selling. This led to higher yields around the world - the US Treasury 10-Yr yield hit 1.61%. This morning’s upbeat US jobs data helped fuel the bond sell-off, but led to a higher open in US stocks and a stronger US dollar index. The surprise decision by OPEC+ to keep oil production limits steady led to a surge in oil prices, WTI is currently trading at $65, up $4 a barrel.

“Success is not final; failure is not fatal: it is the courage to continue that counts.” 

Winston S. Churchill
  • FX Rates
    March 5, 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

    The US dollar is opening higher following the upbeat US jobs data. Traders are also buying the dollar as safe haven protection from market uncertainty related to the global bond sell-off, and equity and commodity market volatility. The dollar gained against all currencies except the oil-related currencies -- the Norwegian krone, Russian ruble and Canadian dollar -- following the OPEC+ decision to hold production levels steady.


    The UK pound dropped 0.5% and to its lowest level in two weeks, in-line with the rally in the dollar. The FTSE equity market is higher today, one of the only global equity markets to rally.


    The euro dropped briefly below $1.19, its lowest level since late November, as traders rush to the safety of the dollar. Traders await key economic data releases next week – employment, GDP, Industrial Production, as well as the European Central Bank meeting on Thursday – the ECB’s -0.50 benchmark rate is expected to remain unchanged.


    The CAD whipsawed in a wide range following news that OPEC+ decided to maintain its oil production limits for member nations. The USD/CAD is currently trading near yesterday’s close at C$1.2665. Traders await the Bank of Canada meeting next Wednesday, when the BOC’s 0.25% benchmark rate is expected to be unchanged.


    The Australian dollar was the worst performing currency overnight, dropping to its lowest level in nearly a month. The AUD was negatively impacted by news that China had set its GDP growth target above 6% for the year, below what most analysts had expected, which drove iron ore prices lower.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
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.

Scott Petruska
Scott Petruska

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Markets sell off amid variant concerns


Daily FX Update: Dollar at sixteen-month highs ahead of Thanksgiving holiday


Daily FX Update: Dollar stronger and Treasury yields rise


Daily FX Update: Dollar climbs broadly following Powell nomination


Daily FX Update: Risk-off trading on renewed concerned of lockdowns


Daily FX Update: The greenback trades mixed after steady US jobless claims