REGION:

Daily
FX Update

The US withdrawal from the Iran nuclear deal has little impact on global markets.

 |  May 09, 2018

The US dollar changed little overnight following Trump pulling us out of the Iran nuclear agreement. Although Asian equity markets fell slightly, EU equities showed small gains and the S&P is opening higher. Oil prices jumped past $70 a barrel. UST 10-year yields are trading at 3.00%, ahead of today’s $25 billion 10-year note auction.

"Your positive action combined with positive thinking results in success." Shiv Khera

  • FX Rates
    May 09, 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/USD1.1882
    GBP/USD1.3586
    USD/CAD1.2863
    AUD/USD0.7465
    USD/JPY109.77
    USD/CNH6.3615
    USD/ILS3.5860
    USD/MXN19.5720
    USD/CHF1.0030
    USD/INR67.2750

  • USD

    The dollar hit a fresh four-month high overnight, but then stalled, as oil prices pushed higher. Dollar buying throughout the European time zone was muted as traders begin to de-emphasize geopolitical risk. The dollar should remain bid as the 10-year yield tests the 3.00% ceiling.

    GBP

    The UK pound dropped briefly following poor UK retail sales data. Traders are sidelined as they await the BOE meeting tomorrow. No hike is expected, but BOE’s Mark Carney will be pressed for his assessment of a rate hike later this year. Hedge funds have pared their long UK pound positions.

    EUR

    After an early sell-off following the Iran deal announcement, the euro climbed higher through the trading day and sits now close to yesterday’s close. French industrial production and manufacturing data disappointed and helped fuel early weakness in the euro.

    CAD

    The Canadian dollar rebounded from a seven week low on Tuesday, supported by a fresh three-year high in crude oil prices. The US-Canada 2-year sovereign rate spread continues to widen, providing tailwinds for a stronger USD.

    ASIA/PACIFIC

    Asian equities weakened overnight as geopolitical pressures continue to fuel global investors selling Asian emerging market assets. The US dollar is approaching JPY110, the level that capped the dollar rally earlier in the month. Japan imports 100% of its oil, so the higher oil prices hurt Japan’s economy.

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

Scott Petruska is a senior advisor for Silicon Valley Banks’ global financial services group, and is based in Boston, MA. He advises clients on currency and interest rate hedging strategies and helps them with other aspects of global banking. He regularly writes blogs on topics covering the global financial markets, conducts client seminars and webinars, and speaks at regional financial conferences.

Petruska has over 30 years experience in the currency and interest rate markets, and has lived and worked in Boston, Chicago, New York City, Singapore and Tokyo. Prior to joining SVB in 2009, he worked at several large international financial institutions, including National Westminster Bank, Irving Trust, Bank of New York, State Street Bank and Commerce Bank. He has been an institutional trader, product developer, analyst, salesperson and advisor.

Petruska has been awarded several professional designations, including the CFA (Chartered Financial Analyst), FRM (Financial Risk Manager) and CMT (Certified Market Technician). He earned his undergraduate degree in Finance & Banking from the University of Wisconsin.

Follow Author on Twitter | LinkedIn

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