US dollar trading at one-month highs

US dollar trading at one-month highs

It’s a big week ahead for central bank decisions, including the Fed and Bank of England. Markets have shifted towards long US dollar and pushed up the greenback to levels not seen in a month. Commodity prices have slumped, impacting commodity-linked currencies including the Australian and Canadian dollars. The election in Canada seems to be a close one, but odds suggest current Prime Minister Justin Trudeau will be re-elected.

This week's economic data releases:

Tuesday: US Housing Starts

Wednesday: Federal Reserve Rate Decision

Thursday: Bank of England Bank Rate, US Initial Jobless Claims

  • FX Rates
    September 20, 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 Bloomberg dollar index strengthened 0.3% to the highest level since August 23. The US dollar advances ahead of a busy week for central bank announcements. The Fed will announce its policy decision on Wednesday with the expectation that the central bank will suggest a move towards tapering.

    GBP
    Sterling dropped to one-month low on broad US dollar strength. Markets are speculating that the drop in energy prices will make it more difficult for the Bank of England to raise rates.
    EUR
    EUR/USD fell as much as 0.2% hitting a low of $1.1700. One-week volatility for the currency hit its highest level in almost 2 months ahead of central bank meetings and federal elections in Germany.
    CAD

    Current Prime Minister Justin Trudeau is set to maintain his seat in a close election today. USD/CAD is trading near one-month high on overall USD strength.

    ASIA/PACIFIC

    The risks from China Evergrande Group’s debt crisis is hurting sentiment on commodities, including iron ore. Currencies linked to commodities including the Australian dollar are trading lower on the news. AUD/USD down as much as 0.5%.

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Cate Camerota
WRITTEN BY
Cate Camerota

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