US dollar mixed as investors focus on stimulus and virus concerns

Cate Camerota

January 26, 2021

US dollar mixed as investors focus on stimulus and virus concerns

Concerns around coronavirus variants, including strands out of South Africa and Brazil along with the well-established variant out of the UK, have investors moving towards risk-off trading. Safe haven currencies including JPY and CHF are trading higher versus G-10 peers. Overnight, GBP and EUR first traded lower before turning, now trading slightly higher than yesterday's close.

“Blessed are those brace enough to make things awkward, for they wake us up and move us forward.”

Glennon Doyle, American author

FX Rates
January 26, 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.

EUR/USD 1.2158
GBP/USD 1.3720
USD/CAD 1.2698
AUD/USD 0.7742
USD/JPY 103.64
USD/CNH 6.4723
USD/ILS 3.2632
USD/MXN 19.9915
USD/CHF 0.8877
USD/INR 72.9550
USD
The greenback traded higher earlier in the session as markets moved towards risk-off amidst concerns of the Covid-19 variants. USD then reversed gains as traders evaluate the delayed US Covid-19 relief package along with a focus on the interest rate decision from the Fed tomorrow.
GBP
GBP/USD was down 0.3% earlier in the trading session before reversing losses and trading up to a high of $1.3720. Data released out of the UK showed that the labor market fared better than expected during the lockdown in November. The vaccine rollout remains a concern for the country.
EUR
EUR is currently trading slightly better than the greenback. The common currency has been one of the biggest decliners this month retreating from multi-year highs.
CAD
USD/CAD is trading about 0.2% lower as strong oil prices support the loonie. Markets will remain focused on the US Covid-19 relief package as well as the rate decision due from the Fed on Wednesday.
ASIA/PACIFIC
Risk-off trading supported the Japanese yen after news that President Biden said he would be open to negotiating the stimulus package. AUD/USD slipped slightly while NZD/USD trades flat.

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
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.

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.

WRITTEN BY

Cate Camerota

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Dollar remains weaker following non-farm payroll disappointment

Kathryn Garvey

Daily FX Update: Dollar sinks following weak employment data

Kathryn Garvey

Jobless claims better than expected, dollar slightly weaker

Kathryn Garvey

Daily FX Update: Dollar mixed versus peers ahead of key data this week

Kathryn Garvey

Daily FX Update: Dollar demand strong ahead of data

Kathryn Garvey

Daily FX Update: Weak demand for USD amid upbeat market mood

Kathryn Garvey