Risk-off trading supports the US dollar

Risk-off trading supports the US dollar

Concerns regarding Afghanistan and the continued spread of Covid attributed to risk-off trading. The safe haven Swiss franc was the strongest G10 currency while the Australian dollar dropped to a nine-month low.

“You can waste your lives drawing lines. Or you can live your life crossing them.”
Shonda Rhimes
  • FX Rates
    August 17, 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 Bloomberg stock index advanced 0.2% following yesterday’s gain of 0.1%. Investors are focused on Jerome Powell’s town hall today, following comments from the Fed’s Eric Rosengren who stated that he expects to see enough US Job growth to warrant bond tapering at the central bank’s meeting next month.

    Data earlier today showed that unemployment fell to 4.7% - the lowest since the summer of 2020. Sterling weakened to lowest levels in three weeks as investors are concerned that the labor market could cool down as government support is withdrawn.
    EUR/USD remains within the 1.17 trading handle. The currency pair is under pressure amidst the broader risk-off trading sentiment.
    USD/CAD is trading higher as the US dollar remains supported by risk adverse trading. The currency pair hit a one-month high of 1.2630 with flight to safety trades and weak oil prices.
    The New Zealand kiwi declined as much as 1.6% as traders are uncertain if the central bank will proceed with the highly anticipated and expected rate hike at Wednesday’s meeting. The country is having a three-day lockdown following the first community case of the Corona virus since February.
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Cate Camerota
Cate Camerota

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