Daily
FX Update

Brexit uncertainty leaves the pound range bound as markets await a breakthrough in negotiations

Industrial Production data and NAHB housing market index data is due out this morning. Brexit uncertainty has created a range for the pound and the markets await a breakthrough in the negotiations between the two parties. Mixed data out of the Eurozone provided a slight bump for the euro.

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  • FX Rates
    April 16, 2019

    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.


  • USD
    The dollar looks to Industrial Production data and the NAHB housing market index data to provide some direction after starting the week on the back foot yesterday. Boston Fed President Eric Rosengren said that the Fed should let inflation run above 2% in good times in order to retain the ability to fight economic downturns. European negotiators have been given the green light to start trade negotiations after a threat of new tariffs. They are targeting a deal by September.
    GBP
    The pound remains range bound due to the lack of progress in the UK Parliament to break the Brexit deadlock. Strong UK wage growth data provided some support for the pound, and the pair looks forward to US Industrial Production and NAHB Housing Market Index data released today.
    EUR

    The euro rose slightly on bearish sentiment for the greenback and mixed data out of the Eurozone. The German ZEW Economic Sentiment indicator improved from 3.1 vs. the -3.6 expected. The same indicator for the Eurozone as a whole came in at 4.5 from -2.5 vs. the expectation of 1.2. ZEW President Wambach stated that “the slight improvement is largely based on the hope that the global economic environment will develop less poorly than previously assumed.”

    CAD

    The loonie continues to trade sideways as oil prices rally, but gains are offset by growing speculation for rate cuts by the Bank of Canada. Markets look to inflation data due Wednesday and retail sales figures on Thursday to provide direction for the Canadian dollar.

    ASIA/PACIFIC

    AUD is today’s weakest major currency after the Reserve Bank of Australia’s minutes discussed a potential rate cut, making this week’s employment data and next week’s CPI that much more important.

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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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