We now have details of the new tariffs on Chinese goods.
May 14, 2019
It now appears this is going to be a process. The net effect will be more expensive cell phones and laptop computers. The tariffs will be on 300 billion dollars of the trade with China. According to Bloomberg, the US will hold public hearings on June 17th regarding the proposed new tariffs. Comments on the hearings will be due by June 24th. The dollar initially rose to the 1.1260 area and then fell about 40 points. The Dow fell 617 points.
"He who angers you conquers you"
May 14, 2019
EUR/USD 1.1210 GBP/USD 1.2915 USD/CAD 1.3479 AUD/USD 0.6938 USD/JPY 109.5700 USD/CNH 6.9041 USD/ILS 3.5816 USD/MXN 19.1464 USD/CHF 1.0084 USD/INR 70.4413
The dollar rose after the NFIB Small Business Optimism for April rose to 103.5 from 101.8. Monthly Import Prices fell to +0.2% from 0.6% in March. Yearly prices fell to -0.2% from +0.1%. The dollar strengthening from yesterday has continued. Exports fell to +0.2% m/m and 0.3% y/y from 0.6%.GBP
The pound is lower by about 30 points after opening at 1.2960. Rumors continue to circulate that the UK could be heading towards a general election because of Brexit. The three-month averaged Unemployment for March fell to 3.8% from 3.9%.EUR
The euro fell due to the strengthening dollar and the weak economic outlook for the euro. The German ZEW survey of expectations fell to -2.1 in May after rising 3.1 in April. CPI inflation was unchanged in April while wholesale inflation rose.CAD
The Canadian dollar weakened this morning returning to yesterday’s lowest level. Oil rose about half a cent but has not helped the loonie.ASIA/PACIFIC
Japanese stocks fell with the Nikkei and the Topix both falling. The Shanghai composite was a little softer. The yen strengthened a little but continues to trade in the same range as yesterday.
The Indian rupee strengthened about half a rupee after the Central Bank added to the liquidity infusion by buying some government bonds.
The Australian dollar continued to decline, pressured by the US China trade debacle.
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.