Daily
FX Update

Demand for haven assets diminishes following increased optimism around US-China

" | 

The US dollar index fell along with other haven currencies as optimism around trade talks between US and China increased. The expectation is that there will be some type of mini-deal between the two countries. Sterling continues to suffer following more news that a no-deal Brexit could be a possibility.

The secret of getting ahead is getting started
Mark Twain
  • FX Rates
    October 8, 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 US dollar fell slightly after advancing yesterday along with other haven assets as market sentiment was risk-off. Optimism around trade talks between US-China caused the change in market sentiment. An outcome of a mini-deal between the two countries is expected.

    GBP

    Sterling dropped lower this morning after the release of more plans for a no-deal Brexit. GBP/USD is currently hovering around the 1.22 handle.  

    EUR

    Data released this morning from Germany showed that there was an improvement in industrial productions after two months of decline. EUR/USD is up slightly, currently trading around 1.0985.

    CAD

    The Canadian dollar fell this morning ahead of housing starts. The numbers were released slightly above expectations (221.2k vs. 220k expected). USD/CAD remains largely unchanged, trading around 1.33. WTI crude is down 1.5%, dropping for a second day.

    ASIA/PACIFIC

    The Japanese yen is weaker this morning following optimism around this week’s US-China trade talks. New Zealand and Australian dollars also rallied on the news. The US-China trade talks are suggested to cover more ground than initially expected and result in some type of agreement.

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.
Dollar ends week on back foot
 
Dollar slides as jobs report surprises
 
Dollar higher on haven status
 
Dollar higher to end quarter
 
Dollar lower as equities rebound
 
Dollar stronger on Covid concerns