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.

    GBP

    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.

    EUR

    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.

    CAD

    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.

    ASIA/PACIFIC

    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.

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Scott Petruska, CFA
WRITTEN BY
Scott Petruska, CFA

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