FX Update

The dollar gains and stocks lack direction amid lingering trade tensions


Yesterday, Reuters reported that China sold $20.45 billion in US treasuries in March – the most in 2 ½ years. Japan sold $11.07 billion – the most since February 2018. Trump appears to be holding off on the decision to raise US auto tariffs by as much as six months. Stocks were mixed globally with European and UK stocks rising.

"He who angers you conquers you"
Elizabeth Kenny
  • FX Rates
    May 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 continues to rise and stocks recovered yesterday as the trade disagreements with China subsided slightly. Different Fed members have said there will not be any cuts in interest rates and are calling for patience. Thomas Barkin of the Fed mentioned it was unlikely to cause a recession and that “the direct impact of tariffs is relatively confined and relatively knowable”.

    Treasuries edged higher and 10-year yields slipped.


    PM Theresa May is being pressured by the Conservative Party and the 1922 committee to resign as soon as possible. The opposition Labor Party said they will vote against the Brexit bill, not just abstain, unless the bill meets their conditions. The Brexit uncertainty has hit the pound which continues to decline.


    German Chancellor Angela Merkel downplayed rumors of a rift between her and Emmanuel Macron of France saying they normally find the middle ground on matters. The euro is lower today and is heading for yesterday’s low of 1.1180 and will look for support there.


    The Canadian dollar strengthened slightly helped by WTI oil prices which rose about 85 cents this morning.  


    Far East stocks were mixed with the Nikkei rising along with Chinese shares as the Shanghai Composite rose about 18 points. The Indian Sensex Index rose 278.6 points. The Indian rupee strengthened. The Australian dollar strengthening against the US dollar continued.

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About the Author

Laurence Hayward is the Senior Advisor for International Markets and Risk for Silicon Valley Bank in its Central Region. He is responsible for helping clients mitigate foreign exchange risk, including trade finance and international cash management.

Hayward has over 40 years in the foreign exchange and interest rate markets, with experience as a banker, broker, trader and marketer / advisor. He has worked in London, Abu Dhabi, Dubai, Singapore, Hong Kong, New York, Houston, Dallas, Santa Clara and Denver for Barclays International, First National Bank of Boston, Tullett and Tokyo Forex International, Gulf International Bank, NationsBank, Bank One, Cambridge Mercantile Corp. and Silicon Valley Bank. He has made presentations to the national AFP, the New Orleans AFP, the Houston TMA. Fort Worth Chamber of Commerce, the University of Colorado at Boulder, the KPMG Global Enterprise Institute in Denver, and many bank presentations on the subjects of foreign exchange, international risk, FASB accounting rules and quant analysis. He has also been published in the Wall Street Journal, the New York Times, and many periodicals.
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