Sterling breaks above 1.40 on vaccine optimism
GBP/USD soared to levels not seen since April 2018 holding within the 1.40 handle as investors are optimistic that the rapid roll-out of Covid vaccinations will support a reopening of the economy. The US dollar continues to weaken against its peers trading down 0.3% for the day.
February 19, 2021
EUR/USD 1.2122 GBP/USD 1.4011 USD/CAD 1.2625 AUD/USD 0.7855 USD/JPY 105.52 USD/CNH 6.4537 USD/ILS 3.2737 USD/MXN 20.3862 USD/CHF 0.8954 USD/INR 72.6512 USD/BRL 5.4014 USD/SGD 1.3244 USD/DKK 6.1362 USD/SEK 8.2809 USD/NOK 8.4489
USDThe dollar index is trading lower for the second day ahead of US President Joe Biden’s speech at the G7 conference. Biden is expected to outline the nation’s new foreign policy.GBPSterling broke through the psychological 1.40 level for the first time since 2018. This move higher comes as investors are optimistic that the vaccine rollout will support a recovery in the economy this year.EUREUR/USD is trading higher following data out of Germany that signaled manufacturing PMI beat estimates.CADUSD/CAD is down 0.6% hitting a low of 1.2605 and on track for a weekly drop close to 1%. The Canadian dollar is largely supported by stronger risk appetite and higher oil prices.ASIA/PACIFICThe Australian dollar surged against all of its G10 peers following comments from Westpac Banking Corp Economist increased his forecast for the country’s 10-year bond yield. USD/JPY is hovering around the psychological level of 105.50.
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