Havens weaken as global equity markets stabilize
May 24, 2019
The Bloomberg Dollar Index is lower against all its G10 peers after reaching five-month highs yesterday. Markets are momentarily risk-off as US-China trade war concerns dampen and PM Theresa May announces her resignation.
"It does not matter how slowly you go, so long as you do not stop."Confucius
May 24, 2019
EUR/USD 1.1201 GBP/USD 1.2670 USD/CAD 1.3444 AUD/USD 0.6920 USD/JPY 109.56 USD/CNH 6.9130 USD/ILS 3.6097 USD/MXN 19.0562 USD/CHF 1.0019 USD/INR 69.5325
The greenback softens with a quiet day expected in the US as we continue to see officials comment on the US-China trade war. The Trump administration has recently announced that it may look to put a number of Chinese surveillance companies on a US watch list to limit the sale of vital US defense technology.
US durable goods orders data released this morning missed expectations.GBP
Sterling recovers from five month lows after Theresa May announced she will step down as PM on June 7. A new prime minister, who will likely lead by late July, faces the same political uncertainty, since the House of Commons remains deeply divided on Brexit. The risk of a no-deal Brexit remains a strong possibility.
UK retail sales beat estimates and provides a slight lift to the currency.EURThe euro touches one-week highs on the back of cable’s rally. ECB member Bostjan Vasle said that the EU economy remains on track with the European Central Bank's projections that an upturn is likely this year. He stated, “I’m quite confident that the economy is on the right track, that what’s happening is in line with what we’re expecting.”CADThe Canadian dollar rises for the first time in three sessions as oil rebounds from the biggest daily drop since December. No economic data is expected out of Canada today.ASIA/PACIFIC
The Japanese yen is in neutral as safe-haven demand is temporarily muted. President Trump commented that the blacklisting of China’s Huawei might be resolved in the framework of a US-China trade deal.
For more analysis on FX markets or information regarding SVB's FX services:
Subscribe to receive the Daily FX Update in your inbox.
Thank you for subscribing to SVB's Daily FX Update.
You’re almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. We also suggest you whitelist the svb.com domain.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
This article is intended for U.S. audiences only.
©2018 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.
The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.