US dollar mixed as investors focus on stimulus and virus concerns

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.

  • 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/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 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.


    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.


    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.

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Cate Camerota
Cate Camerota

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