US dollar remains largely unchanged, commodity currencies supported by firm oil prices

US dollar remains largely unchanged, commodity currencies supported by firm oil prices

The US dollar reversed losses from the Asian trading session remaining largely unchanged since Friday. Traders await the Federal Reserve meeting on Wednesday. Investors are anticipating a continued dovish stance by the central bank. Commodity currencies were supported by a pop in oil prices following news that there will be supply cuts from Iraq and Libya. Australian and New Zealand currencies have strengthened on news that Covid-19 restrictions have relaxed as the two countries have not seen new cases in 8 days.

Economic Data:

1/26 Tuesday – UK Jobless Claims

1/27 Wednesday  - US FOMC Rate Decision

1/28 Thursday – US New Home Sales

  • FX Rates
    January 25, 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 index was little changed after dropping as much as 0.2% during the Asian trading session. The Federal Reserve meeting this week will be a main risk event for the currency markets. Investors are anticipating a continued dovish stance.

    GBP

    Sterling is hovering near its overnight low at $1.3666. A bright spot for the UK is the efficiency of the vaccine roll-out compared to the EU. Britain has vaccinated around five times as many people as the EU proportionate to its population. Sterling reached an eighth month high vs. the euro over the last week.

    EUR

    The euro was one of the worst performing G10 currencies as concern over the pace of the vaccine roll-out continues to weigh on the common currency. Data released out of Germany showed worse-than-expected IFO figures.

    CAD
    The loonie held a slight gain versus the greenback as it strengthened alongside oil prices. WTI rose 1% before normalizing as traders assess the impact of supply cuts from Iraq and Libya.
    ASIA/PACIFIC

    AUD/USD is trading higher following relaxed restrictions in some of Australian states including its most populous state, New South Wales, which reported no new virus cases for an eighth day.

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Cate Camerota
WRITTEN BY
Cate Camerota

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