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Daily
FX Update

Dollar strengthens overnight, Catalans defend independence claim, and crude oil continues to climb.
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  • FX Rates
    October 17, 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/USD1.1744
    GBP/USD1.3173
    USD/CAD1.2548
    AUD/USD0.7830
    USD/JPY112.35
    USD/CNH6.6166
    USD/SGD1.3574
    USD/MXN18.9905
    USD/CHF0.9796
    USD/INR65.0250

  • USD
    The Dollar was stronger in overnight trading after Janet Yellen affirmed the case for a gradual increase in interest rates despite the inflation data last week. There is also speculation that the next Fed Chairman will be more hawkish. Odds rose that John Taylor will replace Janet Yellen after his interview with President Trump.  Crude continues its push above $52 a barrel.
    GBP
    U.K. inflation hit a new 5 ½-year high, helped by the cost of food and transportation. This 3 percent YoY rise should intensify the pressure on households and will strengthen the case for BOE to raise interest rates for the first time in over ten years. Theresa May’s working dinner in Brussels was labeled “constructive and friendly”.
    EUR
    The Euro continues to decline another .3% along with stocks in Europe after Spain cut forecasts for growth from 2.6 to 2.3 percent. Prime Minister Rajoy continues to tell Catalan President Puigdemont to drop push for independence or Madrid will take direct control. ZEW Survey of Germany Assessment of Current Situation and Expectations miss forecast. The Stoxx Europe 600 fluctuated over-night, closing flat after North Korea warned that a nuclear war could “break out any moment.
    CAD
    CAD has posted slight losses in the Tuesday session. On Wednesday, the focus will be on US housing data, with no release of housing starts and building permits. NAFTA pact continues to be under attack as President Trump has declared that it has been terrible for the US and vowed to renegotiate the deal or simply enter into a new agreement with Canada. Oil prices continue to move higher, as fighting continues in Iraq.
    ASIA/PACIFIC
    JPY weaker following report that North Korea and U.S. diplomats may meet in Russia this week. Chinese Communist Party’s congress likely to reinforce the strength of President Xi, which suggest a more stable and less sharply directional Yuan policy. Thailand rejects claims that it engages in unfair currency practices to gain a trade advantage, even as it appears close to meeting U.S. criteria on FX manipulation. India’s rupee climbs for a sixth straight day after positive trade deficit numbers.
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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

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Source: Bloomberg 2017
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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.
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