Daily
FX Update

The FOMC is expected to lift the federal funds rate at today’s policy meeting with the ECB and BOJ policy decisions slated before the weekend.

 |  June 13, 2018

The dollar is holding in morning hours, hitting a three-week high against the yen before a US Federal Reserve policy announcement that investors will scan for clues on how many more rate hikes there will be this year.
“Live for yourself and you will live in vain; live for others and you will live again.”
Bob Marley
  • FX Rates
    June 13, 2018

    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/USD1.1776
    GBP/USD1.3344
    USD/CAD1.3003
    AUD/USD0.7587
    USD/JPY110.44
    USD/CNH6.3942
    USD/ILS3.5858
    USD/MXN20.6870
    USD/CHF0.9863
    USD/INR67.6500

  • USD
    There is no question the Fed will increase short-term rates by another 25bps which would bring the target band to 1.75%-2%.  However, investors remain cautious amid uncertainties regarding a potential shift in expectations for future policy. FOMC members are due to provide updated economic and financial forecasts. President Trump confirmed his intention to stop military exercise with S. Korea while the negotiation with N. Korea is in progress.
    GBP
    The pound is sliding on news that UK PM May is in a frantic search for a compromise to unite the opposing Brexit factions in her ruling Conservative Party before they derail the government. May is racing against the clock on Brexit and fighting battles on multiple fronts. The UK will leave the EU in March next year, but talks in Brussels are struggling to make headway. The slow progress is in part because the premier can’t get her cabinet to agree on the kind of post-Brexit trade regime they want the UK to have with the EU.
    EUR
    The euro is trading in a range and awaiting direction as we head into the FOMC meeting today and the ECB meeting tomorrow. Speculation that the ECB could signal its intention to unwind its massive bond purchasing program in 2018 lifted the euro to a three-week high of $1.1840 last week and has prompted some strategists to become more bullish on the euro.
    CAD
    The loonie has maintained its decline following two straight days of losses ahead of today’s FOMC decision, with markets focused on the outlook for future U.S. monetary policy given that a hike at the current meeting is priced as almost certain.  The BoC meets next month with the probability of rate hike steady at 70%. There is is no major market-moving data set for release in Canada.
    ASIA/PACIFIC
    Yen is weaker for a 3rd day against the dollar as investors price in the possibility of four rate hikes by the Fed this year. AUD and NZD are both higher against the dollar amid uptick in risk appetite, while China eases controls on coal imports and seemingly commits to import more healthcare products, while banning some new steel capacity.
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