Daily
FX Update

Initial jobless claims are better than expected, Brexit struggles, and Canada/U.S. trade deal is still on the table

 |  December 07, 2017

The U.S. Government has one more day to agree on a spending bill, while across the pond Teresa May is focused on the Irish border issue. Draghi is set to speak following expected Eurozone GDP numbers and WTI is off its two-week lows.

“Being nice merely to be liked in return nullifies the point.” 

Criss Jami
  • FX Rates
    December 07, 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/USD1.1792
    GBP/USD1.3386
    USD/CAD1.2848
    AUD/USD0.7521
    USD/JPY112.66
    USD/CNH6.6222
    USD/SGD1.3502
    USD/MXN18.9338
    USD/CHF0.9919
    USD/INR64.56

  • USD

    As progress moves towards a final tax bill, the dollar continues to strengthen. However, the government will run out of money on December 8th (tomorrow) if Congress doesn’t agree on a spending bill by then. Trump is set to meet with Democrats today. Initial Jobless claims come out lower than first surveyed, at 236k. 
     

    GBP

    The British Pound is slightly down overnight as Teresa May continues to work towards a resolution on the Irish border issue. Ireland PM Varadkar wants things to move forward and claims the UK government will be suggesting a new proposal within 24 hours. Brexit Secretary David Davis revealed yesterday that there has been no sector-by-sector Brexit impact forecasts when quizzed by a committee of MPs.

    EUR

    The Euro is slightly down ahead of ECB President Mario Draghi speaking later today regarding the current Eurozone economy following the GDP data release. GDP QoQ has met expectations at .6% while YoY GDP growth is at 2.6%, slightly ahead of expectations. Tomorrow there will be more data released on the health of European countries, including trade balance and manufacturing production.

    CAD

    The Canadian Dollar is weaker today ahead of the housing starts numbers being released tomorrow. The BoC statement reinforced cautiousness around the outlook and output of the economy. Prime Minister Trudeau suggests there is still a Canada / U.S. trade deal that is possible, as WTI also recovers from two-week lows.

    ASIA/PACIFIC

    Most Asian currencies are down with Australian dollar leading the way, hitting its lowest point since June.  Australian October trade missed estimates and weak GDP data reinforced views that the central bank won’t be adjusting their monetary policy anytime soon. In Japan, stocks recover from their worst slide in nine months after U.S. stocks steadied.

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Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.  
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Source: Bloomberg 2017
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