FX Update

UK Prime Minister voting gets underway; oil tanker attack drives WTI futures higher


Voting on the new Conservative party leader began today in the UK with Boris Johnson taking a clear lead. Attacks on two oil takers off the coast of Iran drove oil prices higher this morning. US data came in softer than expected showing a cooling off period in the economy and raising the potential for a rate cut this year.

“When the whole world is silent, even one voice becomes powerful.”
Malala Yousafzai
  • FX Rates
    June 13, 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

    In an address yesterday, President Trump declined to set a deadline for new tariffs on $325B of Chinese goods. Weaker than expected inflation data yesterday has boosted the chance of a fed rate cut coming by September. Jobless Claims rose to five week highs of 222,000 showing signs of a potential cooling-off in the labor market. The dollar is slightly higher this morning.


    Sterling is slightly higher this morning following the MP’s first round vote today to elect a new party leader. Boris Johnson won 114 votes from fellow MPs to move onto the next round. Six additional candidates won the at least 17 votes required. Further ballots will then continue until two candidates are left, at which point Conservative party members will vote. Johnson’s softer tone yesterday regarding wanting to be friends with Europe placated those fearing a no-deal Brexit and in turn supported the pound.

    The euro is slightly lower but tracking sideways this morning as it is taking direction from US-China trade dynamics. Italian Deputy PM Di Maio has said he will “do what Italians need” when asked if Italy would finance planned tax cuts through a budget deficit and that Italy seeks dialogue with the EU.
    An attack on two oil tackers off the coast of Iran sent WTI futures higher by 3% and Brent contracts jumped 3.4%. The commodity tied CAD gained some momentum on the news.

    The Hong Kong dollar is slightly higher this morning and Hibor rates soared to their highest levels in ten years. Soaring rates were attributed to increased demand for the HKD in advance of upcoming corporate dividends and IPOs. Calm returned to Hong Kong as protesters dispersed overnight. The government postponed the reading of the extradition bill for the second time.

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About the Author

Kathryn Garvey is a foreign exchange Associate for Silicon Valley Bank’s global financial services group and has been with SVB since July of 2018. Prior to SVB Kathryn completed co-op internships at Innosight, Market Metrics, and The TJX Companies.

Garvey graduated from Northeastern University in 2018 with a bachelor’s degree in finance, and marketing with elective coursework in entrepreneurship and innovation from Northeastern University.

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