Daily
FX Update

Dollar continues to strengthen; Brexit date likely to be extended

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The dollar is holding onto last week’s gain against the yen and is holding steady in a range against the euro. The Brexit saga continues and the pound remains in its slow strengthening trend.

Monday: February Factory Orders, Durable Goods Orders and Capital Goods Orders

Tuesday: March NFIB Small Business Optimism

Wednesday: March CPI, Real Hourly and Weekly Earnings data

Thursday: March PPI, Initial Weekly Jobless Claims

Friday: Import and Export Index data, University of Michigan Consumer Sentiment, Current Conditions and Expectations

  • FX Rates
    April 8, 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 generally slightly stronger. The US-China trade talks continue on a positive note as Larry Kudlow, economic advisor to Trump, said the negotiations are getting “closer and closer”. The talks are scheduled to continue this week.

    GBP

    PM Theresa May said her Brexit deal is unlikely to pass in the near future. Last week, she tried to get support across party lines. May would like another extension to the end of June. Her hope is that a deal can be agreed upon in Parliament. This would avoid the European Parliamentary elections which take place on May 23rd.  The EU would like a longer extension with some flexibility built in. Liz Truss, the Conservative Chief Secretary, said if they do this it would be “like Purgatory”.

    On Friday the pound broke the 1.3000 level and then recovered as the markets tried to factor in the latest Brexit news.    

    EUR

    Italian debt is in the news again as Italy considers using 2 billion euros from a contingency fund to meet their structural deficit target. Italian growth looks to be slowing and revenue is dropping. Rome is expected to amend its 2020 deficit to 2.1% of GDP when it publishes its new targets on Wednesday.

    The European Central Bank has its next policy meeting on Wednesday. 

    CAD

    The Canadian Dollar strengthened as Housing Starts rose in March. Oil is also helping the loonie as it slowly rises.  

    ASIA/PACIFIC

    Far East stock markets had no particular direction to start the week, but there was a risk off bias. Japanese stocks weakened as the yen strengthened. The Chinese-US trade talks are said to be making some progress.

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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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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