Commodity-linked currencies weaken on the drop in oil

WTI oil slumped below $15 a barrel hitting lowest levels in 21 years. In reaction to this move, oil currencies including the Norwegian krone and Canadian dollar weakened. The US dollar is firmer across the board as oil experiences its biggest one day decline in nearly four decades and as global equities weaken.

4/20 Monday: CA Wholesale Trade MoM

4/21 Tuesday: GE ZEW Expectations, US Existing Home Sales

4/22 Wednesday: UK CPI; Canada CPI

4/23 Thursday: US Initial Jobless Claims; Eurozone Manufacturing

4/24 Friday: US Michigan Sentiment; US Durable Goods

  • FX Rates
    April 20, 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 greenback strengthened against peers amidst risk-off market sentiment. Oil prices declined drastically in reaction to low demand and excess oil supply. Global equities struggle as corporate quarterly earnings are due to be released and as the spread of coronavirus has yet to be contained.

    GBP

    Sterling fell after two weeks of strengthening against the dollar. Bank of England’s policy maker Ben Broadbent made a statement that a three-month lockdown would not be unreasonable and a 35% drop in the UK’s second quarter GDP is not out of the question.

    EUR
    EUR/USD is lower on broad US dollar strength and currently trading below 1.09. The currency pair has maintained a range of 1.08-1.10 since April 8.
    CAD
    USD/CAD is almost 1% higher following the decline in oil prices. WTI has fallen to lowest levels in 21 years, trading below $15 per barrel.
    ASIA/PACIFIC

    The New Zealand kiwi was one of the few G10 currencies to strengthen against the US dollar after news that the government would relax lockdown rules next week as coronavirus cases continue to decline. USD/JPY is up slightly on broad USD strength.

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 fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory

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 Notice. If you have privacy questions, you may contact us at privacy@svb.com. You can withdraw your consent at any time.

Cate Camerota
WRITTEN BY
Cate Camerota

Insights from SVB Industry Experts

 
SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Commodity-linked currencies decline as USD gains

 

Daily FX Update: US dollar on track for largest 2-day gain in 7 weeks

 

Daily FX Update: Dollar ends lower for sixth straight week

 

Daily FX Update: Dollar steady after GDP slump

 

Investors sell dollar ahead of Fed meeting

 

Dollar stronger and gold retreats for $2,000