Uneven US economic data, stocks higher, dollar lower

Uneven US economic data, stocks higher, dollar lower

This morning’s release of US economic data showed uneven economic growth and led to little reaction in markets. Global stocks were mostly in the green overnight and the S&P opened higher. US 10-yr Treasury yields are steady near 1.49%. The dollar is broadly lower with commodity currencies outperforming. The Bank of England kept its benchmark interest rate steady at 0.10% and maintained asset purchases, which drove the pound lower.

 

 

“The bold enterprises are the successful ones. Take counsel of hopes rather than fears to win in this business.” 
Rutherford B Hayes
  • FX Rates
    June 24, 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 US dollar is broadly lower, the commodity currencies – MXN, BRL, RUB, NZD – the top performers. A slew of economic data was released and showed an uneven recovery. Goods Trade Balance (-$88Bn), Retail Inventories (-0.8%), Durable Goods Orders (+2.3%) for May were all less than expected. GDP Q1 (+6.4%) and Core PCE (+2.5%) were unchanged from the previous period and met expectations. Jobless Claims for the week ending June 19 at 411K were higher than expected.

    GBP

    The UK pound fell after the Bank of England kept policy unchanged, effectively pushing back against speculation that rising inflation should be met with a start to removing its excessive monetary stimulus.

    EUR
    The euro edged higher in-line with broad dollar weakness, and following the German IFO Survey for June, which showed an improved business climate.
    CAD

    The Canadian dollar moved little overnight, even as oil prices dropped below $73 per barrel. News of Canada’s rising vaccination rate puts the country on track to reach thresholds to reopen the border with the US as early as next month.

    ASIA/PACIFIC

    The USD/JPY reached a fresh 15-month high above ¥111 on the back of rising expectations of widening US interest rates (rising) vs Japanese rates (steady), a key driver of changes in the value of the yen. In the European time zone, the USD/JPY fell back below ¥111, where it currently trades.

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Scott Petruska
WRITTEN BY
Scott Petruska

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