A dollar rally starts the New Year

The dollar reversed a six-day sell-off, making broad gains to start the New Year. Trading is thin as it continues in holiday mode. Traders were comforted that a year-end money market squeeze did not occur, which has led to stability in global markets - equities are higher, bonds are mixed. There is optimism that the US-China ‘phase one’ deal will be signed shortly. The Chinese yuan gained after its government eased liquidity requirements for its commercial banks.

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  • FX Rates
    January 2, 2020

    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 bounced off five-month lows amid renewed risk-on feelings in the financial markets to start the year. The dollar index climbed 0.25% after going through its worst monthly fall in nearly two years. Released this morning, US Jobless Claims fell to 222,000 (near expectations) and showed a continuation of the trend of strong labor data.


    The UK pound is lower by 0.50% amid broad general strength in the US dollar and profit-taking by traders in the pound after finishing its best quarter in a decade. Traders are also playing down prospects for the pound for 2020 with predictions of difficult months ahead for trade negotiations with the EU.


    The euro moved lower within broad dollar strength and following weak Eurozone PMI Manufacturing numbers released earlier today. The data showed a contraction for the 11th straight month and at the fastest rate since 2012.


    The Canadian dollar dropped for the first time in a week amid broad US dollar support and slightly lower oil prices. A leading economic indicator (MLI LEI) for Canada released this morning rose 0.3% for November, less than expected and below October’s 0.5% gain.


    China’s PBOC reduced the reserve requirement ratio (RRR) for its financial institutions to support the economy. The Chinese yuan made a slight gain, reaching its strongest level since last August.

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