Daily
FX Update

Dollar strengthening continues, UK parliament fails to agree on indicative votes

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The trend for the dollar to strengthen is still in place. The UK Parliament failed to agree on indicative votes for Brexit consensus. US-China trade talks have circled back to intellectual property rights.

“It is best to act with confidence, no matter how little right you have to it.”  
Lillian Hellman
  • FX Rates
    March 28, 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. Yesterday, Ester George of the Fed said the Fed can be patient on interest rate policy as downside economic risks are possible, and slowing growth in China adds to the negative picture. She said that inflation is not a problem at the moment, and thinks GDP will slow to 2% this year. In the meantime, trade talks with China have run into the old issue of intellectual property rights. Trade tariffs are being reviewed by the Trump administration. Q4 GDP slowed to 2.2% from 2.6%.

    GBP

    The UK Parliament failed to agree on the indicative votes on a number of proposals which would have created a clearer picture on how to proceed forward with Brexit. It was hoped the votes would produce a consensus. PM Theresa May’s threat to step down and not be part of the trade negotiations caused a number of conservative MPs to back her plan.  

    EUR

    ECB head Mario Draghi said yesterday that the ECB would will soften the impact of negative interest rates on some parts of the EU economy. He also said the EU economy is pointing to contraction, which means a continued accommodative approach is appropriate. This morning’s economic confidence for March rose to 81.9 from 79.4. 

    CAD

    The Canadian dollar is lower again as oil inventories rose in the US weekly report. A further fall in oil could push the Canadian rate up through a key resistance level of 1.3450.

    ASIA/PACIFIC

    The Indonesian rupiah fell with other emerging market currencies. The Indonesian central bank is buying its currency to support the rupiah. The US-China trade talks seem to be making some progress. Asia stocks sold off.

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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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