Daily
FX Update

Dollar stronger, Brexit extended until October 31

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The dollar is stronger this morning after the March PPI came in higher than forecasted. Oil prices have fallen nearly a cent from this time yesterday to $63.91. The timeline for Brexit has been lengthened to October 31 giving them the flexibility to get it right. They could leave sooner if parliament can agree on a deal.

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  • FX Rates
    April 11, 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 strengthening from yesterday has continued. Today’s PPI inflation data came in far higher than expected. The monthly for March rose to +0.6% from 0.1% and the y/y rose to 2.2% from 1.9%. Initial Weekly Jobless Claims and Continuous Claims both fell from last weeks revised numbers. Yesterday’s Fed minutes reiterated patience regarding future rate hikes.

    GBP

    Yesterday, the EU leaders granted the UK a Brexit extension until Oct. 31 with the option to leave sooner if a deal is agreed upon. PM Theresa May has urged MP’s to “reflect” over the Easter break and return with a resolution to break the Brexit deadlock. This would avoid the UK from having to take part in the European elections that take place at the end of May which the UK is now increasingly likely required to take part in.

    EUR

    The European Central Bank left its monetary unchanged as expected. Mario Draghi said in his press conference that data confirmed “slowing growth momentum” due to Brexit and Trade protectionism. He also reaffirmed the ECB’s commitment to restore inflation from 1.5% (February) to just under 2%.

    CAD

    The Canadian dollar fell amid oil sliding lower and rumors of Canadian bank shares being sold. 

    ASIA/PACIFIC

    Far East stocks fell led by Chinese shares. The yen weakened further and the Indian rupee strengthened as the Indian election began. US Treasury Secretary Munchin declared that the US-China trade agreement is pretty much agreed upon, but the timing remains unclear.

    The Australian dollar strengthening against the US dollar continued.

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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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