Treasuries and dollar tick higher to end week

The dollar rose slightly on better than expected PPI – yet still ended with the worst week YTD. FOMC Chair Powell commented that the US recovery from the pandemic will be uneven and Treasury yields ticked higher but remained below 1.7%. Prince Philip, husband to the Queen and Duke of Edinburgh passed away this morning at the age of 99. The UK will enter a period of mourning.

"This and many other countries, owe him a debt greater than he would ever claim, or we shall ever know."
Queen Elizabeth II on Prince Philip
  • FX Rates
    April 9, 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

    The dollar edged higher today along with Treasury yields and equity futures ahead of PPI. PPI increased by 4.2% in March 2021 compared to March 2020 and increased 0.7% compared to the previous month. The YoY comparison is the sharpest since 2011. Despite the slight move higher, the dollar will wrap the week 1% lower after a surprisingly weak jobless claims and ongoing loose Fed speak.

    GBP

    The pound lost ground versus the stronger dollar and touched two-month lows early in the London session. The pound lost ground to the euro as well, which was amplified by a squeeze in euro-pound short positions.

    EUR

    Euro dropped slightly versus the dollar but posted a 1.2% gain this week – the largest of G10 peers. Mixed data out of Germany showing a rise in exports and a fall in industrial output weighed on the common currency.

    CAD

    The Canadian dollar initially edged lower ahead of employment data but rebounded higher when data showed unemployment dropped to 7.5% vs 8% expected.

    ASIA/PACIFIC

    The dollar gained 0.4% on the yen as US Treasury yields advanced and $1.6B of 109.15 expiries hold support ahead of 109.00.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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