.png){kind=logo}
Strong US Retail Sales drives dollar and stocks higher
After uneventful overnight trading, this morning’s release of surprisingly upbeat US Retail Sales drove the dollar and equities higher, wrapping up a positive week for both markets. Bond yields edged higher on the news, but at 1.32%, UST 10Yr yields remain near the lower end of a volatile week. Traders are struggling to keep up with event-risks related to Delta variant news, inflation expectations/actions by central banks, and corporate earnings. Oil and gold prices are unchanged.
-
FX Rates
July 16, 2021Rates 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 1.1806 GBP/USD 1.3804 USD/CAD 1.2587 AUD/USD 0.7414 USD/JPY 110.2300 USD/CNH 6.4790 USD/ILS 3.2890 USD/MXN 19.8791 USD/CHF 0.9191 USD/INR 74.5612 USD/BRL 5.1153 USD/SGD 1.3562 USD/DKK 6.3017 USD/SEK 8.6799 USD/NOK 8.8195
-
USD
The dollar is higher on the day, and ending a week of broad strength versus it’s peer currencies. This morning’s Retail Sales for June were much better than expected and a big improvement over May’s negative figures. Day-to-day volatility in the FX market remains low, as do movements in the stock and bond markets, which may continue for the remainder of the summer.
GBPThe UK pound is lower and headed for its worst week in a month against the US dollar. Earlier in the day, the pound had rallied by 0.5% on news that UK companies added staff in June at a record pace. A economic affairs committee at the House of Lords is challenging the Bank of England’s view that inflation is transitory. Traders await for the next Bank of England meeting on August 5th.
EURThe euro is flat overnight, but trading in a relatively narrow $1.1790-1.1820 range. Inflation data for June in the eurozone came in as expected and unchanged from May – CPI YoY at 1.9% and CPI MoM at 0.3%. ECB member Ignazio Visco emphasized the need for the ECB to keep monetary policy supportive of the economic recovery and to protect its financial markets from higher interest rates in the US.
CADThe Canadian dollar moved little overnight, but trades not too far from yesterday’s weakest level since April at 1.2614. After numerous delays, PM Justin Trudeau laid out a timeline for reopening Canada’s border to the US and overseas visitors -- mid-August for the US and September for visitors from other countries.
ASIA/PACIFICThe Japanese yen is the weakest currency overnight. The Bank of Japan left its monetary policy unchanged today, but lowered its expectations for economic growth after taking into account new Covid restrictions and a “no-fan” Olympics, which start next week.
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
Subscribe to receive the Daily FX Update in your inbox.
By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
| Source: Bloomberg | |
This article is intended for U.S. audiences only. ©2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. |
