Daily
FX Update

Dollar mixed amongst G10; OECD raises growth forecasts for the US, UK and eurozone

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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
  • FX Rates
    May 21, 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

    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.

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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

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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