REGION:

Daily
FX Update

Brexit issues linger while the market waits to digest key rate policy decisions from the BoC, RBA, and RBI.  Economic releases taking a backseat.

 |  December 05, 2017

Brexit and U.S. tax reform remain focal points, along with the potential for a U.S. government shutdown. Data remains something of a sidebar this week. The pound seen pressured by fickle sentiment stemming from Brexit headlines, while Aussie led gains as retail sales data beat estimates. Various PMI data out of the euro area weighing slightly on the EUR this morning.

“Don't count the days, make the days count.”   

Muhammad Ali
  • FX Rates
    December 05, 2017

    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.

    EUR/USD1.1828
    GBP/USD1.3423
    USD/CAD1.2661
    AUD/USD.7616
    USD/JPY112.74
    USD/CNH6.6231
    USD/SGD1.3474
    USD/MXN18.6984
    USD/CHF.9860
    USD/INR64.3862

  • USD

    The dollar has lacked direction so far today, while sterling remained under pressure and the dollar bloc units outperformed, led by AUD.  On the economic front, U.S. Trade data did little to move the currency despite showing that the deficit for Oct widened to $48.7B vs. $47.5B est.  Despite this, U.S. Treasury yields rebounded from overnight lows with the 10yr touching 2.395%.

    GBP

    After poor sentiment stemming from Brexit headlines, the Pound is set for its biggest drop in weeks. Theresa May is said to have fought to revive a deal to break a deadlock in the EU negotiations. UK retail sales increased .6% YoY in November.  The composite and services PMI both missed expectations.

    EUR

    EUR is lower after stalling around the mid-European session near the 1.1875 region.  The approval of a major tax reform plan by the US Senate, coupled with the ongoing upsurge in US Treasury yields continue to support demand for the greenback and has been one of the key factors weighing on the EUR.  Eurozone PMI data met estimates at 56.2 while October retail sales were weaker than expected at -1.1% m/m. 

    CAD

    USD-CAD, which has been on a downward path since last Friday's release of forecast-busting GDP and employment data, edged out a six-week low of 1.2651. Policy makers have turned more cautious after the September hike, however, there’s speculation that they will signal a brighter outlook, spurring CAD strength into year-end.  WTI is lower as traders continue to unwind long positions which had been built up ahead of the OPEC meeting last week.

    ASIA/PACIFIC

    AUD showing strength following an above-forecast retails sales report which was subsequently backed-up by a comparatively less-dovish statement from the RBA governor. AUD-USD carved out a three-week high of 0.7653. The Trump administration is debating how to put pressure on North Korea.  They are looking to sanction China, as Pyongyang’s top patron, but doesn’t want to alienate the best hope to curb North Korea’s nuclear program.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.  
See all of SVB's latest FX information and commentary at www.svb.com/foreign-exchange

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Policy. If you have privacy questions, you may contact us at privacy@svb.com. You can withdraw your consent at any time.

Source: Bloomberg 2017
(*)

© 2017 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. 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).

The views expressed in this article 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 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.

0758-0917

About the Author

Ben Johnston is a foreign exchange advisor for Silicon Valley Bank’s global financial services group, based in Boston, MA. He specializes in developing niche-specific risk management and process optimization strategies for Silicon Valley Bank's Private Equity and Venture Capital clients, including exposure identification, risk management, policy development and tailored product strategy. He has over nine years of experience in the banking industry, including portfolio management roles at Sovereign Bank/Santander and Silicon Valley Bank.

He holds an undergraduate degree of Finance & International Economics from Bentley University.
Now Let's Get Started

See how Silicon Valley Bank makes next happen now for entrepreneurs like you.

Connect With Us

Log in to SVB.com