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Daily
FX Update

Trade war continues to heat up – this time hitting the dollar and helping the euro

The euro and the yen were two of the only currencies gaining on the US dollar.  Trump threatens more Chinese tech companies.  The British pound gets hit by both negative Brexit news and weaker economic data.  Oil weakens but the Canadian dollar remains strong today on better than expected retain data.

“You cannot reason with a tiger when your head is in its mouth”

 

Winston Churchill
  • FX Rates
    May 22, 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 trade war between the US and China continues to dominate financial market headlines as the US weighs stronger restrictions on Chinese technology companies. There seems to be little chance of compromise from the US as Chinese President Xi Jinping called on citizens to join a “new long march”, a phrase he’s used previously to characterize achieving progress despite hardship. Trade talks are paused with President Trump accusing China of backing out of a deal.

    GBP

    The British pound sank after members of UK parliament demanded Prime Minister Theresa May step down within days. Contributing to the weakness, CPI and PPI data for April came in weaker than expected.

    EUR

    The euro is stronger this morning as traders sell the British pound in favor of the euro.  Brexit news causes some selling of the pound relative to the euro.
    Italian deputy PM Matteo Salvini has once again criticized the EU, stating that some European Union rules and limits have to be changed to allow Italy to introduce a “flat tax” at 15% to boost jobs.

    CAD

    The Canadian dollar is stronger this morning after retail sales figures came in better than expected, providing evidence that Canada’s economy is resilient.
    The oil price sank on concerns that trade tensions, primarily between the US and China, will impact the global economy, resulting in less demand for oil.

    ASIA/PACIFIC

    The Chinese renminbi was stronger overnight after 16 straight days of losses. Chinese authorities set the daily peg stronger in what is viewed as a stabilizing effect.
    The Japanese yen strengthened after Trump threatened to sanction more Chinese tech companies and US Treasury Secretary Steven Mnuchin said he has no plans to travel to China.

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