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Daily
FX Update

Dollar gains after this morning’s surprisingly strong US jobs data

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The dollar jumped following stronger than expected US jobs data. The US added 224k jobs in June, much better than the expected 160k. Investors had been positioned for a Fed rate cut later this month, so were caught wrong-footed, as the odds quickly dropped for such a cut. In addition to dollar gains, stock futures fell and bond yields jumped.

“America is another name for opportunity.”
Ralph Waldo Emerson, American philosopher, born in Boston, MA
  • FX Rates
    July 5, 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 rallied across the board following upbeat US jobs data for June – US Payrolls climbed 224,000, Unemployment rose from 3.6% to 3.7%, and Average Hourly Earnings increased from a 3.1% YOY. US stocks and bond selling was also quickly seen.

    GBP

    After the strong US jobs data report, the UK pound quickly dropped to close at $1.25. It approaches last December’s lows just under $1.25. Boris Johnson, front-runner to replace Theresa May as UK prime minister, said that delivering Brexit would be key to keeping the UK together.

    EUR

    The euro dropped in European trading after release of weak German factory orders for May. The Stoxx Europe 600 Index fell by 0.4%, its biggest sell-off in more than a month. After the US jobs data, the EUR/USD currency pair dropped 50 pips.

    CAD
    The USD/CAD currency pair jumped by 70 pips – C$1.3057 to C$1.3127 - following a combination of strong US jobs data and weak Canadian jobs data. Unemployment in Canada edged higher to 5.5% in June.
    ASIA/PACIFIC

    The USD/JPY currency pair jumped nearly 50 pips after strong US jobs data. In overnight trading, the yen held steady after a surprise 4% gain in Japan’s Housing Spending for May YOY, its strongest in four years.

    The USD/CNY currency pair moved higher, as emerging market stocks fell and currencies dropped after the strong US jobs data.

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

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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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