Daily
FX Update

The dollar strengthens against yen and euro, UK parliament to take over Brexit plans

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The dollar is stronger against the yen and the euro. The UK Parliament will take the Brexit reins today, allowing indicative votes to evaluate alternatives to PM May’s plans. Asian stocks were mixed.

“The action is best that secures the greatest happiness for the greatest number.”  
William Dean Howells
  • FX Rates
    March 27, 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 mixed against the other currencies. Stephen Moore, Trumps nominee to join the Fed, said that the rate hike in December was “inexplicable” and the Fed should cut rates by a ½% immediately. Mary Daly of the San Francisco Fed said, “patience was the way to go”. The House lost a vote to veto President Trump’s national emergency declaration to fund the border wall. US stocks are lower this morning.

    GBP

    The UK Parliament will take over control of Brexit today. They will allow indicative votes on Brexit alternatives compared to the PM’s proposals. The votes will be non-binding, but they could put pressure on the government to change its position. The PM will meet with members of the 1922 Conservative committee to try to garner more support for her deal – perhaps support in exchange for her resignation.

    EUR

    ECB head Mario Draghi, speaking to an audience in Frankfurt, said the domestic economy was resilient, and the ECB has instruments to help them reach its goals. The euro is slightly lower following the trend of the last 5 to 6 days. 

    Turkish short-term borrowing costs have sky rocketed over 40 fold in the last 3 days.

    CAD

    The Canadian dollar is lower as oil prices declined this morning. New Zealand's dovish comments on interest rates did not help. The Canadian Trade balance improved was still -4.25 bln in January.

    ASIA/PACIFIC

    Most Asian stock markets are higher with the exception of Japan. Chinese data showed industrial companies are off to their worst start to the year in a decade.

    The Reserve Bank of New Zealand left interest rates unchanged, and in a dovish statement, said the next move could well be lower. 

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Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
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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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