The US dollar traded higher across the board following data that signaled retail sales for the month of October increased 1.7% versus consensus of 1.5%. EUR/USD is trading at levels not seen in 16 months and below the 1.1350 level. Markets are optimistic regarding tensions between the US and China, which pushed the Chinese yuan to its best level since May.
“We listen to views that make us feel good, instead of ideas that make us think hard.”
November 16, 2021
EUR/USD 1.1345 GBP/USD 1.3432 USD/CAD 1.2545 AUD/USD 0.7323 USD/JPY 114.52 USD/CNH 6.3950 USD/ILS 3.0940 USD/MXN 20.7405 USD/CHF 0.9283 USD/INR 74.3720 USD/BRL 5.4820 USD/SGD 1.3555 USD/DKK 6.5525 USD/SEK 8.8520 USD/NOK 8.7180
The Bloomberg dollar index is up nearly 0.5% while 10-year Treasury yields are steady at 1.62%. Retail sales for the month of October showed an increase of 1.7%, higher than estimates of 1.5% and the highest since March.GBPSterling jumped nearly 0.43% versus the US dollar before settling back with only a small gain. Data out of the UK showed positive trends for labor that support the case for the Bank of England to hike interest rates at its next meeting in December.EUREUR/USD dropped to fresh 16-month lows as monetary policy divergence between the Federal Reserve and the European Central Bank is in focus. Technical traders point to next support at $1.1290.CADCAD trades slightly lower following the strong US retails sales data, while Canadian housing starts in October fell for a fifth straight month. Yesterday, Bank of Canada Governor Tiff Macklem stated that while there is still substantial monetary policy needed, the central bank is “getting closer” to increasing interest rates.ASIA/PACIFICUSD/JPY climbed 0.3% following the strong data out of the US.
The Chinese yuan strengthened to its highest level since May on optimism that tensions between US and China will ease following the leaders' summit.
This article is intended for U.S. audiences only.
©2022 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, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.