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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.
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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
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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:
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| Source: Bloomberg | |
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