FX Update

Dollar hits new YTD highs, Canadian interest rate remarks due out this morning


Weak data and uncertainty in Europe drove the dollar higher as it hit YTD highs. Brexit is driving headlines again as upcoming local elections provide impetus for the government to show progress. Canada is set to release a rate decision today and traders will be paying close attention to the BOC’s tone surrounding the decision.
“The mind is not a vessel to be filled but a fire to be kindled”
  • FX Rates
    April 24, 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 is higher again today, hitting new 2019 highs following the trend of the S&P 500 and Nasdaq, which both closed at record highs yesterday. Investors continue to run to stocks as the Fed remains on pause and weak European currencies provide strength to the dollar. MBA mortgage applications fell 7.3% last week vs falling -3.5% the week before.
    Sterling is again trading below $1.30 this morning, weighed down by a strong US dollar and ongoing Brexit concerns. UK local elections at the end of the month are looming and the Tory party could lose votes depending on the outcome. Senior MPs are pushing for PM May to resign before the elections. Meanwhile, she is said to be working on a fourth agreement to bring to Parliament.

    The euro slid lower again today after hitting a near six-month low yesterday. German IFO index worsened unexpectedly and French factory confidence fell to the lowest level in nearly four years. No other releases are on the economic calendar and trade news has been quiet.

    The dollar hit seven week highs against the loonie this morning ahead of the BOC interest rate announcement. Governor Stephen Poloz and Sr. Deputy Gov. Carolyn Wilkins are set to deliver a speech on the monetary policy decision this morning. Rates are expected to remain unchanged at 1.75% and traders will be focused on the tone of the remarks accompanying the decision.

    US and Chinese delegates will meet in Beijing next week to continue US-China trade negotiation, targeting a draft agreement by the end of May. China’s 10 year sovereign yields moved higher as PBoC signaled the central bank is moving away from easing.

    The aussie is weakest among the major currencies this morning after weaker than expected CPI data in Australia and the Reserve Bank signaled a possible rate cut by the end of the year.

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About the Author

Kathryn Garvey is a foreign exchange Associate for Silicon Valley Bank’s global financial services group and has been with SVB since July of 2018. Prior to SVB Kathryn completed co-op internships at Innosight, Market Metrics, and The TJX Companies.

Garvey graduated from Northeastern University in 2018 with a bachelor’s degree in finance, and marketing with elective coursework in entrepreneurship and innovation from Northeastern University.

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