Daily
FX Update

Weaker dollar blamed on commodity producers selling the greenback as markets await FOMC and economic data

The US dollar sold off overnight as commodity currencies outperformed and the euro received a boost from decent GDP data. The British pound is having its best day of the month on overall dollar weakness and optimism around cross-party Brexit talks. Much of the global financial markets will be closed tomorrow for May Day holidays. Japan remains on an extended Golden Week vacation.

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  • FX Rates
    April 30, 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

    Month-end selling of US dollars pushed the greenback lower as markets await the release of Conference Board Consumer Confidence at 10:00 a.m. Eastern. Housing price data came in as expected this morning (+3%). With the FOMC announcement and press meeting tomorrow and Non-Farm Payrolls on Friday, traders will be adjusting positions and awaiting the data.

    GBP

    The British pound strength today is attributed mostly to US dollar weakness as commodity companies sell dollars and buy their local currencies, including the pound.
    Optimism on Brexit outshown a backlash from Tory member activists as more than 10% signed a petition for Theresa May to resign causing a meeting to be called to discuss the proposal. This move hasn’t been taken in 185 years.

    EUR

    The euro strengthened overnight after Q1 GDP came in better than expected. However, the downtrend in the euro continues and is not far from the 2-year lows set yesterday.

    CAD

    The Canadian dollar gave back earlier gains after GDP data for Q1 came in at -0.1% vs. expectation of zero. The loonie was stronger earlier on higher oil prices. Oil markets watched events in Venezuela where opposition leads staged an announcement of the end of the Maduro regime alongside some members of the military.

    ASIA/PACIFIC

    Chinese renminbi strengthened after PMI data for April was somewhat lower than expected but above the 50 reading indicating growth.
    Japanese markets remain closed for an extended Golden Week.
    The Indian rupee strengthened on overall dollar weakness while the ongoing election in India tends to amplify any currency movements.

Contact Us

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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