USD remains strong against its peers

USD remains strong against its peers

Concern regarding the delta variant of Covid has investors moving away from risk-on moves. Yesterday, derivative traders pushed out expectations for Fed rate hikes from January 2023 to March 2023. The market is now pricing in 18 bps lower for Fed rates for June 2024. The greenback remains strong against its peers even as oil prices and Treasuries have stabilized.

“The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.” 

Michelangelo
  • FX Rates
    July 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 greenback hit a fresh cycle high before erasing gains as oil and Treasuries normalized. Investors move to dial back risk-taking amidst the resurgence of Covid cases despite widespread vaccination.

    GBP

    Sterling is down for a fourth day, falling as low as 1.3588. Comments from Bank of England policymaker Catherine Man “not be premature in terms of tightening monetary policy” caused the downward pressure on the pound.

    EUR
    EUR/USD is trading lower, hitting 1.1765 following Italy’s 5-year yield which turned negative for the first time since April.
    CAD
    USD/CAD holds above 1.2750 despite the weaker oil selloff. Yesterday WTI fell almost 7%. Today, the commodity has started the trading session trading flat within the mid $66/bbl limiting further losses for the loonie.
    ASIA/PACIFIC

    USD/JPY is trading slightly higher as traders take short-term profits. The New Zealand dollar leads losses for G10 currencies falling as much as 0.8%, the lowest since November.

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Cate Camerota
WRITTEN BY
Cate Camerota

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