The dollar rose to its best level in a month, ECB meeting tomorrow
Laurence Hayward | July 24, 2019
The dollar climbed to its highest level in a month. The markets are focused on tomorrow’s ECB meeting. Boris Johnson will be the new UK Prime Minister succeeding Theresa May. Her final time in front of Parliament will be tomorrow after which she will hand her resignation to the Queen.
"Better do a good deed near at home than go far away to burn incense."Amelia Earhart
July 24, 2019
EUR/USD 1.1147 GBP/USD 1.2489 USD/CAD 1.3138 AUD/USD 0.6985 USD/JPY 108.04 USD/CNH 6.8764 USD/ILS 3.5245 USD/MXN 19.1010 USD/CHF 1.0975 USD/INR 68.98
The dollar’s slow strengthening continues. There seems to be some progress in the trade talks with China. Larry Kudlow expects China to buy US agricultural products soon. Bloomberg said Robert Lighthizer will meet Chinese officials in Shanghai next week. Markets are focused on the interest rate cut that is expected at the end of the month’s Fed meeting.GBP
With Boris Johnson as the new Prime Minister, a number of cabinet resignations are expected resulting in a cabinet reshuffle. The focus will return to Brexit after the new cabinet is in place. Boris Johnson was one of the prime Brexiteers, so the odds of a hard exit have risen. The pound has strengthened today.EUR
The euro has continued to weaken ahead of the European Central Bank meeting on Thursday. The prospect of more monetary stimulus is on the table - one or more 25 basis point cuts are expected this year. Today’s PMI data disappointed and the euro slid within sight of the support at 1.1100.CAD
The Canadian dollar has weakened against the USD for a fourth day despite oil prices rising.ASIA/PACIFIC
Equities in Asia are higher as trade tensions with the US abate. The yen is weakening under pressure from rising oil prices.
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.