Currencies are a mixed bag this morning with China's GDP data driving the yen lower by 0.4%.
The dollar strengthened again today on better than expected inflation numbers, giving investors confidence that consumer buying remains strong.
The dollar rebounded to start the week on strong retail sales after getting trounced last week. Retail sales in the U.S. rose 1.1% in March and the data suggest that GDP for 1Q may get a boost from initial estimates.
The USD continues to slide against the majors via technically-driven levels and continued concern over last week’s anemic U.S. jobs report. With U.S. Treasury interest rates still hovering close to their recent lows, emerging market currencies are benefitting as global investors’ appetite for yield via “risk-on” trading (USD negative).
Manage Currency Risk as You Grow Your Business Globally
Silicon Valley Bank can help you protect your company with foreign exchange capabilities that allow you to move money across borders seamlessly, minimize foreign currency risk and maximize your returns. Our advisors and traders combine expertise and the latest currency hedging tools to help you buy, sell and operate effectively in an increasingly integrated global marketplace, and gain a competitive advantage.
We offer competitive pricing and trade in virtually all freely traded and non-restricted currencies on the global inter-bank market, directly from our trading floor.
We take a personalized and consultative approach to managing your global currency risk. Through a large variety of foreign exchange services, our goal is to help you protect the U.S. dollar value of your foreign currency revenues and transactions, control the cost of your foreign currency payments, minimize the translational impact on your balance sheet and mitigate the impact on your company's earnings due to conversion of foreign currency cash flow. Among our services:
Guide to Global Treasury Services (PDF)
Guide to Foreign Exchange Policy
Foreign Exchange Hedging Basics
Guide to Trade Finance
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 and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources. Opinions expressed are our opinions as of the date of this content only. The material is based upon information which we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.
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