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Stimulus confidence driving global stocks higher, dollar lower
The dollar is lower and global stocks higher as confidence grows that stimulus/relief initiatives in Europe and America will soon energize global growth. Stocks in Asia and Europe and US S&P futures are all in the green, US Treasury yields are firm and the dollar is lower across the board. Oil and gold prices are both higher. Market liquidity is light in holiday trading.
“All the great things are simple, and many can be expressed in a single word: freedom, justice, honor, duty, mercy, hope.”
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FX Rates
December 29, 2020Rates 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 1.2266 GBP/USD 1.3499 USD/CAD 1.2796 AUD/USD 0.7608 USD/JPY 103.55 USD/CNH 6.5304 USD/ILS 3.2103 USD/MXN 19.9579 USD/CHF 0.8835 USD/INR 73.4263
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USD
The US dollar is broadly lower after the House passed a bill supported by the President to increase direct payments from $600 to $2,000 in the stimulus/relief package. However, the Republican-led Senate votes on the measure today and may not pass the larger payment amount.
GBPThe UK pound is higher, but trades near $1.35, below recent highs of over $1.36. The post-Brexit EU-UK trade deal reached on Christmas Eve needs to be passed tomorrow by UK Parliament. Opposition members have confirmed that they will vote in favor of the deal, even though doubts remain on how the key UK services sector will be affected.
EURThe euro has edged higher and is within sight of the recent 2-year high at $1.2270. The 27 EU members have provisionally approved the EU-UK post-Brexit agreement. European stocks are higher as the EU implements its vaccination program, even as the new coronavirus variant has been reported across the region.
CADThe USD/CAD currency pair is trading under 1.28 again amid the broadly weaker US dollar and within thin holiday trading. Investor optimism is growing as hopes for additional US stimulus helps drive currencies higher. The Bloomberg Nanos Confidence (economic mood) index released this morning was at its highest level since March.
ASIA/PACIFICThe Japanese yen and Chinese yuan moved little overnight, while at the same time the Australian and New Zealand currencies performed quite well. The New Zealand dollar nears its high at $0.7170 reached earlier in the month.
For more analysis on FX markets or information regarding SVB's FX services:
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| Source: Bloomberg | |
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