Daily
FX Update

US Tax bill hits the Senate, UK inflation numbers underperform, and ECB stimulus touted as highly successful.

 |  November 14, 2017

US inflation numbers come out on Wednesday, but all eyes are on President Trump’s tax bill.  Across the pond, the Pound missed inflation expectations while the Eurozone continues to grow under monetary stimulus.  In Canada we are waiting to see what inflation and home sales data looks like, while Asian currencies remain quiet around weaker output data from China.
"I like the cold weather. It means you get work done."
Noam Chomsky
  • FX Rates
    November 14, 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/USD1.1757
    GBP/USD1.3105
    USD/CAD1.2709
    AUD/USD0.7638
    USD/JPY113.53
    USD/CNH6.6422
    USD/SGD1.3600
    USD/MXN19.0861
    USD/CHF0.9914
    USD/INR65.4200

  • USD

    Treasury Secretary Steven Mnuchin warned that President Donald Trump's administration will not accept nor support any tax plan with a corporate tax rate of more than 20%. This is in regards to the negotiations between the House and the Senate for reconciliations to their passed bills. The House version of the tax bill comes to floor later this week.

    Eyes are on inflation data due out Wednesday but absent a large surprise, the results are not expected to cause much of a reaction in forex markets.

    GBP

    The Pound has stabilized after an early sell-off (intraday low of 1.3075) on news that U.K. consumer-price inflation held steady in October, missing expectations for an acceleration (3% vs. 3.1% Est.). This data prompted BOE Governor Mark Carney to send a letter to Chancellor Phillip Hammond.

    Brexit Secretary David Davis announced in the House of Commons that he will introduce legislation for the parliament to vote on the final Brexit agreement with EU. 

    EUR

    EUR punched through 1.17 in the morning session driven primarily by strong German preliminary GDP readings that it accelerated to 0.8% in Q3 (vs. 0.6% Est.). Eurozone economic sentiments beat estimates (30.9 vs. 29.3). Markets will be listening closely to Mario Draghi and Janet Yellen as Central Bankers attend an ECB event in Frankfurt today.

    ECB VP Vitor Constancio hailed the central bank's massive monetary stimulus as "highly successful" in driving recovery but maintained a cautious tone.

    CAD
    The Canadian Dollar is slightly weaker against the Dollar for the week, trading around 1.2717. Existing home sales and inflation data comes out Wednesday and Friday, respectively. As WTI moves to its highest price since 2015, the links between CAD and WTI are being recoupled. Analysts are estimating if oil can get to $60/bbl, CAD should be able to get to 1.22 levels. December rate hikes have dropped to 20%.
    ASIA/PACIFIC

    Asian currencies remain flat against the US Dollar today, with CNH appreciating the most, around a quarter of a percent. Policy makers in China should soon be addressing trade-offs between risk and growth as output data slowed in October. China is Australia’s number one trade partner.

    The Australian Dollar has been fighting back off lows against the USD on recent confidence data. There is also inflation data coming out Wednesday and the jobs report on Thursday. 

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