Risk-on trading supports commodity-linked currencies

Risk-on trading supports commodity-linked currencies

Bloomberg dollar index fell to a three-week low as markets moved towards risk-on trading. Stock prices strengthened while 10-year US yields fell 1bp to 1.59%. Commodity-linked currencies led gains for G-10 currencies with AUD and NZD strengthening as much as 1%.

"It is always the simple that produces the marvelous."

Amelia Barr
  • FX Rates
    October 19, 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 index is 0.5% lower as traders begin speculating that this could be a reverse of a strong dollar trend. The greenback hit year-to-date highs in recent weeks and risk-on trading today has pushed the dollar lower.

    GBP

    Sterling hit its highest level since Sept 16 strengthening to 1.3816 almost +0.7%. This move higher followed comments from the Bank of England Governor Andrew Bailey.

    EUR

    EUR/USD continues to strengthen hitting a high of 1.1669 earlier in the session. The options market is suggesting that the pair could break through spot key resistance levels.

    CAD

    USD/CAD is trading only slightly lower following a reverse in trend due to WTI crude prices briefly weakening. USD/CAD is down just 0.1% after hitting lows of 1.2311 earlier in the session.

    ASIA/PACIFIC

    NZD and AUD along with other commodity-linked currencies led gains amongst the G-10 currencies. NZD/USD strengthened as much as 1% following momentum after a strong release of CPI. The Australian dollar gained 0.9%.

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Cate Camerota
WRITTEN BY
Cate Camerota

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