Daily
FX Update

The US dollar extended losses into a fourth day after private payroll data for May comes in much weaker than expected.

A gain of only 27,000 of private jobs in May was much worse than the 185,000 expected.  The ADP data for April was 271,000 bringing job creation in the US into question.  The US dollar immediately sank, continuing losses that began last Friday after Trump announced tariffs on Mexico.

“A schedule defends from chaos and whim”  

Annie Dillard

  • FX Rates
    June 5, 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

    Trade talks with Mexico are due to start today at the White House.  Trump sees tariffs on Mexico as serving two purposes – stopping illegal immigration and prompting the return of US companies from Mexico back to the US- and so Trump is unlikely to back-down on his Mexico tariffs.
    US Services and Composite PMI data is released at 9:45am Eastern time.  The ISM non-manufacturing index comes out at 10am Eastern and is expected to be 55.4.

    GBP

    The pound rose on overall US dollar weakness and PMI data that came in more or less in line with expectations. 
    A Conservative Party spokesperson has said that the first ballot to decide the new party leader, and therefore new PM, would be on June 13th, with further ballots scheduled for June, 18th, 19th and 20th and the vote of the party membership completed by the end of July.

    EUR

    The euro strengthened vs. the US dollar on stronger Eurozone PMI data and very weak private payroll data out of the US.
    Europe is set for further elections as Greek Prime Minister Tsipras stated that a snap election would be held on the 7th of July, the election has been called due to the current government’s poor result in the recent EU elections.
    The EU commission will start the infringement process against Italy over its fiscal policy escalating a fight which begun in December.

    CAD

    The Canadian dollar gained vs. the US dollar but much less so than other major currencies.  The price of oil continued falling to the lowest point since February.  Inventories of oil in the US show a huge increase, causing oil traders to speculate again on oversupply. 

    ASIA/PACIFIC

    The Australian dollar was initially weak vs. the US dollar on speculation the Reserve Bank of Australia may have further interest rate cuts this year.  However, like most currencies, the A-dollar gained once the private payroll data was released.
    The Chinese renminbi was modestly stronger vs. the US dollar despite general pessimism regarding the Chinese economy.  Most market participants expect the Chinese authorities to hold the renminbi stable until after the G20 meeting later this month.

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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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