Commodity-linked currencies decline as USD gains

  • August 4, 2020

Commodity-linked currencies decline as USD gains

WTI oil prices slide to $40/bbl as markets moved away from risky assets. Investors shifted focus to negotiations between US lawmakers regarding a recovery package to address the coronavirus pandemic. G10 currencies weakened against the greenback except for the Australian dollar which strengthened following a statement from the central bank vowing to resume quantitative easing measures on Wednesday.

“Just because there’s a hurricane going on around you doesn’t mean you have to open the window and look at it.” 

Taylor Swift
  • FX Rates
    August 4, 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 US dollar swung between gains and losses earlier in the trading session as the market anticipates data releases including employment numbers due later this week. The expectation is for jobless claims to remain high.

    Sterling is headed towards a third day of losses dropping to a low of 1.3005. Bank of England is scheduled to meet later this week and the market is expecting that the central bank will keep its benchmark rate unchanged.

    The EUR slipped early in the session following mixed data released out of the eurozone. EUR is currently trading around today’s low of 1.1741.
    USD/CAD is trading higher hitting levels above 1.34. The loonie weakened against the US dollar as WTI crude oil prices fell 1.7% to $40.32/bbl.

    USD/JPY rose to a high of 106.19 struggling to trade beyond the 106.20 level. The Australian dollar strengthened versus the US dollar following a statement from the central bank pledging to resume quantitative easing.

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