Dollar mixed amongst G10; OECD raises growth forecasts for the US, UK and eurozone
Laurence Hayward | May 21, 2019
The dollar weakened this morning as New York opened. The trade dispute with China kept pressure on US stocks which ended the day down 84 points yesterday. Today, British Prime Minister Theresa May will meet with her cabinet to discuss her newest Brexit bill.
“Don’t talk too much, be focused on the goal and achieve it”Niki Lauda
May 21, 2019
EUR/USD 1.1151 GBP/USD 1.2719 USD/CAD 1.3412 AUD/USD 0.6871 USD/JPY 110.5400 USD/CNH 6.9353 USD/ILS 3.6064 USD/MXN 19.1200 USD/CHF 1.0105 USD/INR 69.7225
Yesterday, Fed Chairman Jerome Powell said that higher risk corporate loans resembled the mortgage market before the subprime crisis, but added regulators are more vigilant now and the financial system is better prepared for downturns. The White House granted Huawei a temporary general license to do business with US companies which added some relief after the recently imposed tariffs.GBP
The pound is rising this morning. PM Theresa May will present the latest iteration of the Brexit bill to her cabinet today to review changes and get more support from opposition Labor Party members. May will also make a major speech on her “bold new” Brexit deal that will be presented to the House of Commons during the first week of June.
The Bank of England’s Ben Broadbent said it would not be acceptable to seek a no deal departure from Europe just to end the uncertainty facing businesses. The May Confederation of British Industry Trends Total Orders fell from -5 to -10 and Selling Prices slid from +1 to -1 in May.EUR
EU and UK regulators disagree on how to supervise financial markets after Brexit but the UK wants a bespoke arrangement once they leave the EU. The OECD warned that the Bank of England should not raise interest rates, given the risk of a Brexit–induced downturn.CAD
The Canadian dollar fell this morning but is now recovering. Oil is almost unchanged at US$63.10.ASIA/PACIFIC
The Shanghai Composite stock market rose 1% this morning. The Reserve Bank of Australia meeting minutes indicate an interest rate cut could be coming in June due to concerns over recent employment data.
For more analysis on FX markets or information regarding SVB's FX services:
Subscribe to receive the Daily FX Update in your inbox.
Thank you for subscribing to SVB's Daily FX Update.
You’re almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. We also suggest you whitelist the svb.com domain.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
This article is intended for U.S. audiences only.
©2018 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.
The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.