Demand for haven assets diminishes following increased optimism around US-China
Cate Camerota " | October 8, 2019
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.
October 8, 2019
EUR/USD 1.0975 GBP/USD 1.2208 USD/CAD 1.3309 AUD/USD 0.6739 USD/JPY 106.91 USD/CNH 7.1531 USD/ILS 3.5058 USD/MXN 19.5675 USD/CHF 0.9916 USD/INR 71.0262
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.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory