Risk sentiment erodes; dollar mixed versus peers

Risk sentiment erodes; dollar mixed versus peers

The dollar and other havens edged higher versus some peers in risk-off trading as combined worries about central bank tapering and the Delta Covid variant erode risk appetite. The risk-off movement is driven by falling inflation expectations and the rise of the Delta variant. The euro rallied versus the dollar following Lagarde and the ECB’s comments on inflation.

“Patience is bitter, but its fruit is sweet.”

Jean-Jacques Rousseau
  • FX Rates
    July 8, 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 dollar edged higher versus some peers amid risk off appetite. Jobless claims are due out today and follow yesterday’s JOLTS data where job openings hit a record high in May. Yesterday’s Fed minutes revealed officials are not ready to adhere to a tapering timeline, but expect conditions to be "met somewhat earlier than they had anticipated at previous meetings."

    GBP
    The pound dropped slightly as gilt yields fall and is closing in on a July low. Rising Covid cases in the UK tamper recovery.
    EUR

    The euro rose this morning as Lagarde speaks in a press conference following the conclusion of the ECB’s strategic review. In the release, Lagarde commented that the ECB doesn’t see 2% inflation as a ceiling in a hawkish change of tone.

    CAD

    The Canadian dollar lost ground versus the greenback for the fourth day pressured by falling oil prices and buying interest for the USD.

    ASIA/PACIFIC

    The Japanese yen strengthened versus the USD as large stops were triggered below 1.1020. Risk-off sentiment bolstered the Japanese currency, however a rise in Covid cases has put Tokyo into a state of emergency as the Olympics draw near.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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