Daily
FX Update

Strong manufacturing data in China lifts market spirits, the US dollar eases, UK parliament debates Brexit deal alternatives

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Upbeat manufacturing data out of China lifted market spirits. Investors shifted to risk-on mode, moving out of global bonds and into equities, the demand for the dollar easing across the board. UK Parliament members debate today on alternatives to a Brexit deal.

Monday: Retail Sales (US, Feb), ISM Manufacturing (US, Mar), Construction Spending (US, Feb), Business Inventories (US, Jan), Unemployment (Eurozone, Feb), CPI (Eurozone, Mar)

Tuesday: PPI (Eurozone, Feb)

Wednesday: Retail Sales (Eurozone, Mar)

Friday: US Labor data (US, Mar)
  • FX Rates
    April 1, 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 eased across the board, as investors shifted to risk-on mode. US equities are opening higher and UST 10Y yields are higher by 3 bps to 2.44%. Plenty of US economic data will be released this week, including the all important labor data on Friday.

    GBP

    The UK pound again traded briefly under $1.30, then made gains ahead of UK parliamentary debate on various Brexit deal alternatives. EC President Juncker said yesterday that the EU’s patience is running thin.

    EUR

    The euro made small gains even as German economic data fell more than expected. Factory orders contracted again in March, suffering their steepest drop since 2009, and employment dropped for the first time in three years.

    CAD

    The Canadian dollar moved little overnight, holding its gains made last Friday following unexpectedly strong GDP in Canada.

    ASIA/PACIFIC

    The Japanese yen fell for a third day as market risk eases, reducing investor demand for the safe-haven yen.

    The Chinese yuan changed little overnight. Investors have been eager buyers of China’s equities and bonds, as China implements measures to boost their economy. China’s manufacturing PMI rose, as did the private Caixin manufacturing PMI, an index for China’s smaller and private firms.

    TRY

    The Turkish lira dropped as much as 2.3% following weekend municipal elections in Turkey, which saw Turkey’s President Erdogan’s AK party lose in several key cities.

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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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About the Author

Scott Petruska is Chief Currency Strategist and senior advisor for Silicon Valley Bank’s 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 more than 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.

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