Stocks higher on upbeat economic data, dollar mixed, OPEC meeting

Stocks higher on upbeat economic data, dollar mixed, OPEC meeting

Overseas stock markets are mostly in the green and US stocks opened higher amid a slew of upbeat economic data. European stocks gained on news that eurozone factories are being pressed by soaring demand, eurozone inflation rose, and German unemployment fell. House prices in the UK showed the fastest increase since 2014. The US dollar is mixed against its peers. Oil prices are firm ahead of tomorrow’s OPEC+ meeting. Traders await Friday’s US jobs data.

Economic Data for this week:

Tuesday:
US Manufacturing Purchasing Managers’ Index (May), US Construction Spending (Apr), CA GDP Q1

Wednesday: Federal Reserve Beige Book (economic data from 12 Federal Reserve Bank districts)

Thursday: US Services Purchasing Managers’ Index (May)

Friday: US jobs data report (May)



  • FX Rates
    June 1, 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

    In light trading and low volatility, the dollar showed a mixed performance over the long weekend: “commodity” currencies (BRL, NOK, AUD, CAD) were outperformers and the Indian rupee, hard hit by capital outflows, was the biggest underperformer.

    GBP

    After reaching its highest level in three years, the UK pound fell nearly a cent, and now sits about 0.20% lower than Friday’s NY close. PM Johnson said he plans to reopen the UK economy as planned on June 21, despite concerns following a three-day surge in Covid cases of the Indian-variant-type.

    EUR

    The euro is up slightly over the long weekend, but trading is light and volatility low. Yesterday, Germany reported consumer prices rose at annual rate of 2.4% in May, exceeding expectations of 2.3% and its highest level since 2018. There is a dearth of eurozone aggregate economic data released this week.

    CAD

    The Canadian dollar gained on the back of higher oil prices, which reached 2-year highs ahead of tomorrow’s OPEC+ policy meeting. This morning’s GDP data for Canada was mixed: March’s GDP MoM at 1.1% was slightly higher than expectations of 1.0% and GDP YoY at 6.6% better than 6.5% expected. However, Q1 GDP annualized of 5.6% was weaker than 6.8% expected and 9.6% for Q4.

    ASIA/PACIFIC

    The Chinese yuan weakened slightly over the long weekend, but the USD/CNY pair continues to trade under the key 6.40 level. Yesterday, China’s central bank made an unexpected policy move to restrain the rally in the CNY, when it announced that domestic banks must hold more foreign currencies in reserve, the first such change in more than a decade.

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Scott Petruska
WRITTEN BY
Scott Petruska

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