Dollar stronger on Trade optimism, Brexit deal could be in the works
Laurence Hayward | August 27, 2019
"Far better is it to dare mighty things, to win glorious triumphs, even though checkered by failure... than to rank with those poor spirits who neither enjoy nor suffer much, because they live in a gray twilight that knows not victory nor defeat."Theodore Roosevelt
August 27, 2019
EUR/USD 1.1102 GBP/USD 1.2287 USD/CAD 1.3241 AUD/USD 0.6761 USD/JPY 106.00 USD/CNH 7.1613 USD/ILS 3.5155 USD/MXN 19.9191 USD/CHF 0.9827 USD/INR 71.4850
The dollar marginally strengthened as trade talks with China are set to resume. The dollar strengthened and Wall Street staged a relief rally yesterday. On the data front, consumer confidence figures will be released today.GBP
The pound has risen in three of the last four days. The opposition Labour party met to talk about blocking a no-deal Brexit as Boris Johnson said the “EU does tend to come to an agreement right at the end” and he is “marginally more optimistic” about making a new deal.EUR
The euro is slightly weaker this morning. At the G7 meeting in France, European Council’s Donald Tusk said the EU will retaliate if the US imposes tariffs on French goods. Tusk’s comments follow president Trump’s threat to place tariffs on French wines in response to France’s new digital services tax, which affects US tech giants, including Amazon, Facebook and Google.CAD
The Canadian dollar strengthened as WTI oil price climbed yesterday.ASIA/PACIFIC
The Chinese yuan looks to be ending its worst month in history falling about 4%. Other Asian currencies also look very soft due to the trade dispute with China. The Aussie and New Zealand dollars both fell.
For more analysis on FX markets or information regarding SVB's FX services:
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.