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Risk appetite increased significantly through the day yesterday and into this morning. The result was a weaker dollar by end of the trading day and more weakness this morning. The Chinese renminbi trades at its strongest level in 3 years and commodity currencies are higher again today. The British pound is at its lowest in a year after the Financial Times reports new travel restrictions are imminent.
“You can’t have everything. Where would you put it?”
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FX Rates
December 8, 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 1.1310 GBP/USD 1.3210 USD/CAD 1.2624 AUD/USD 0.7142 USD/JPY 113.86 USD/CNH 6.3426 USD/ILS 3.1097 USD/MXN 20.9300 USD/CHF 0.9225 USD/INR 75.45 USD/BRL 5.5848 USD/SGD 1.3633 USD/DKK 6.5726 USD/SEK 9.0575 USD/NOK 8.9299
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USD
The dollar is weaker after Pfizer/BioNTech says their vaccine will neutralize the Omicron variant resulting in an increase in risk-on sentiment. JOLTS job openings for October are due out later this morning. Forecasts are for a number over 10 million for the third month in a row.
GBPThe pound sank after news that more Covid-related restrictions are being considered. The markets cut back on forecasts of potential interest rate hikes by the Bank of England.
EURThe euro is stronger today on overall US dollar weakness. The Common Currency seems to be continuing to benefit today from yesterday's better-than-expected Q3 final reading of Eurozone GDP which came in at 3.9% vs. the 3.7% forecast.
CADThe Canadian dollar continues to strengthen after yesterday's gains. The Bank of Canada will meet later today to outline monetary policy for next year which is expected to include interest rate increases. Speculative forward rate bets indicate the market is expecting an aggressive 6 rate hikes in 2022.
ASIA/PACIFICThe Chinese renminbi continues to strengthen and is at the strongest levels since May 2018. Concerns over the impact of Omicron variant as well as containment of credit issues in the Chinese property development sector have contributed to a bullish renminbi – which is expected to continue to strengthen.
The Indian rupee is trading close to its weakest levels of the year relative to the US dollar after the central bank kept interest rates at very low levels to offset potential impact of Omicron.
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
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| Source: Bloomberg | |
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