FX Update

This morning’s weaker than expected US jobs data drives the dollar, equities, and bond yields lower

May’s US jobs data released this morning was weaker than expected. Non-farm Payrolls rose 75,000 missing estimates of 175,000; the Unemployment rate held at near a 50-year low at 3.6%, while Average Hourly Earnings climbed 3.1% y/o/y, also less than expected. The reaction in the markets was quick and severe. The dollar declined across the board by about 0.5%, equities fell as did bond yields, with UST 10-yr yields dropping 9 bps to 2.07%.

“The most important thing to do if you find yourself in a hole is to stop digging.”


Warren Buffett, Berkshire Hathaway CEO
  • FX Rates
    June 7, 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 dollar’s kneejerk reaction to the large weaker-than-expected US jobs data was to fall about 0.50% across the board. The dollar now stands at its weakest level since March.


    The UK pound jumped to one-month highs versus the dollar, reaching $1.2750 following the weak US jobs data. Today, PM May stepped down as leader of the ruling Conservation Party, but will stay on as PM until a replacement is found. The search is well underway with Boris Johnson, former London mayor and foreign secretary, as the current favorite.


    The euro is trading near its highest levels since March after it gapped 0.5% following the US jobs data. Tensions eased between Italy and the EU, pushing Italian 10-year yields down 18 bps today to 2.30%, their lowest level in over a year.


    Canada’s better-than-expected jobs data contrasted sharply with the weak US data. The Canadian dollar benefited more so than most other currencies, reaching 1.3300 for the first time since late March. Canada’s unemployment fell to 5.4%, its lowest level since 1976.


    The Chinese yuan (CNY) moved little overnight and this morning following the weak US jobs data. However, the offshore yuan (CNH) weakened to 6.96 overnight, its worst level versus the dollar since last December following comments by the governor of the People’s Bank of China suggesting that the yuan breaking through the 7.00 level is not unthinkable.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at
See all of SVB's latest FX information and commentary at

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Policy. If you have privacy questions, you may contact us at You can withdraw your consent at any time.

Now Let's Get Started

See how SVB makes next happen now for entrepreneurs like you.

Connect with Us